First Bank of Nigeria Limited has reacted to reports concerning its ongoing legal battle with media mogul Nduka Obaigbena, which is currently the subject of litigation.
The bank, in a statement released on Tuesday, countered what it described as “sponsored but false narratives” about the matter.
The Federal High Court, Ikoyi, Lagos, had on December 30, 2024 granted an order restraining all commercial banks in Nigeria from releasing or dealing in all monies and assets up to $225.8 million due to Mr Obaigbena from any account maintained by him.
The court also blocked all commercial banks from releasing or dealing in all monies and assets up to the said amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena and General Hydrocarbons Limited (GHL), an oil and gas firm in which all the three are directors and shareholders.
Obaigbena, chairman and editor-in-chief of THISDAY Media Group and Arise News Channel, is also the chairman of GHL.
The company, in a statement by its director of strategy and operations Abdelmuizz Bello, however, denied owning the bank, saying reports that it does are misleading and malicious.
In its response, First Bank emphasised its longstanding reputation as a responsible corporate citizen and its respect for the judicial process, noting that it is constrained from commenting on specific legal issues that remain sub-judice. However, the bank felt compelled to provide key clarifications to protect its integrity.
First Bank explained that the dispute stems from a loan agreement under which the bank extended credit facilities to GHL for the development of Oil Mining Lease assets.
While First Bank says it has adhered to its obligations, it alleged breaches by GHL, including the diversion of proceeds, and requested the appointment of an independent operator to ensure transparency and protect stakeholder interests.
GHL reportedly rejected this request and instead demanded additional funding without complying with the terms stipulated by the bank. GHL initiated arbitration proceedings and approached the Federal High Court for preservative orders pending arbitration.
First Bank clarified that it is the only party to have filed a substantive claim against GHL at the Federal High Court. The bank reiterated that its claims pertain to subsequent credit facilities, governed by documents that mandate disputes be resolved through Nigerian courts, not arbitration.
The statement firmly rejected allegations of abusing judicial processes, highlighting that the bank sought legal remedies to recover diverted funds, preserve assets, and prevent future breaches.
Reaffirming its commitment to customers, the bank stated: “FirstBank remains committed to supporting the legitimate business aspirations of its customers while upholding a strong credit culture. Borrowers are expected to honor their repayment obligations, and the bank will take lawful measures to protect its interests.”
The bank also expressed gratitude to shareholders for the success of the initial round of its parent company, FirstHoldco Plc’s, capital raise and anticipated a similarly positive outcome in the upcoming final round of the recapitalization exercise.
With over 130 years of unbroken service, First Bank reassured customers and stakeholders of its resilience, stability, and commitment to providing gold-standard banking services. The bank emphasised that it will continue to offer first-class financial solutions while safeguarding the interests of its stakeholders and maintaining transparency in its operations.
