. ..As shareholders suffer N66.4bn loss amid continuous battle
By Charles Ebi
Financial institutions in Nigeria have unblocked the accounts and assets of General Hydrocarbon Limited and its directors despite First Bank of Nigeria’s claims of pending orders in connection with a disputed $225.8m loan.
GHL confirmed the unfreezing of its assets on Thursday following a landmark ruling by Justice Deinde Dipeolu of the Federal High Court.
Although Justice Dipeolu delivered on January 29, 2025 lifting the Mareva injunction placed on GHL and its directors, First Bank in a counter release claimed that the injunctive orders made by Justice Dipeolu on 30th December 2024 were eight in number out of which only two were Mareva Orders.
First Bank’s Board Chairman, Femi Otedola in a post shared on X, claimed that other injunctive orders namely, Orders 6, 7, 8, 9, 10, and 11 were not discharged or set aside, and remain valid and subsisting.
But GHL said that Otedola’s claims were misleading, adding that the banks have complied with the unfreezing of the oil company’s assets and accounts.
GHL said, “The compliance by the banks was effected in the face of false and misleading statements by FBN Chairman, Femi Otedola, Managing Director Olusegun Alebiosu and Lawyers in the press today maliciously and mischievously misinforming the public on the clear and unambiguous ruling by the learned Judge.
“This falsehood is the latest in a pattern of deceit and dishonesty from First Bank of Nigeria, that has left the public shocked and disappointed that a supposedly first-rate financial institution in a constitutional democracy like Nigeria would go so low and consciously and willfully disobey the law and continue to spread false information at will and without remorse”.
GHL had planned to institute a $1bn suit against First Bank for defamation.
GHL noted on the development that it has “Been left to file multiple cases across borders seeking damages for defamation, libel and breach of contract.
“It will be recalled that the Mareva injunction was secured in the first place by First Bank when they suppressed material information and failed to fully disclose a subsisting Judgement of the same Federal High Court in Lagos.
“GHL will continue to seek justice worldwide against FirstBank for breach of contract ,by obtaining a benefit without complying with it’s obligations, after restating its financial statements with the critical support of GHL who are now asking the Courts to determine if FirstBank’s Audited Accounts are correct in the face of non compliance with conditions precedent for those restatements in 2021/2022 where their N306bn loss became N151bn profit as stated in their current Rights Issue.”
Meanwhile, Investors’ sentiments on First Bank of Nigeria Holding ,FBNH, shares have been on a gradual decline since the battle between the lender and General Hydrocarbons Limited ,GHL, sparked public debate.
First Bank shares have lost over 5.8% of their value from N30.9 per share on Monday, January 30, 2025, to N29.1 per share on Thursday, January 30, 2025.
Based on data, shareholders have lost N66.4bn after the company’s market capitalisation fell from N1.11tn on Monday to N1.04tn on Thursday.
FBN began the year with a share price of N28.05 and has since gained 3.74% on price valuation, ranking 73rd on the NGX in terms of year-to-date performance.
But the gains are on a gradual decline over the case, which evolves around funding for Oil Mining Licence 120 and a disputed $225.8m loan.
The gradual decline has triggered panic on the First Bank Board as the Board Chairman, Femi Otedola shared a post on X, on Thursday suggesting to investors that the bank has the upper hand in the case which is in court.
On Wednesday, GHL secured a court order unfreezing its assets and those of its directors blocked by First Bank of Nigeria following the disputed oil deal.
First Bank had secured orders freezing the firm’s account and the accounts linked to directors of GHL over the alleged $225.8m debt.
GHL alleged that First Bank failed to fulfil its obligations under their agreement to explore and develop an oil asset—Oil Mining Lease ,OML, 120.
The company said First Bank’s alleged breach of contract caused GHL severe losses, including over $47m and 217 days of lost operations.
In a twist, the Federal High Court overturned the Mareva injunction after arguments presented by GHL’s legal counsel, Abiodun Layonu, SAN, and Olumide Aju, SAN, who represented the second to fifth defendants in the case.
Justice Dehinde Dipeolu ruled that the Mareva injunction violated a prior order from a court of concurrent jurisdiction.
Justice Dipeolu referred to an earlier order issued by Justice Ambrose Lewis-Allagoa in Suit No. 1953.
Justice Dipeolu found that the injunction sought by First Bank of Nigeria and FBNQUEST LTD had failed to disclose Justice Lewis-Allagoa’s order, making the Mareva injunction incompatible with the prior ruling.
The court ruled that First Bank had deliberately “suppressed facts”.
But Otedola on X shared a post that all the court injunctions secured by First Bank against GHL have not been set aside.
