First Bank of Nigeria Limited (FirstBank) has issued a statement in response to recent media reports regarding its ongoing legal dispute with General Hydrocarbons Limited (GHL).

The bank emphasized its status as a responsible corporate citizen and its respect for the legal process, noting that it cannot comment on matters currently before the courts due to sub-judice considerations.

Despite these restrictions, FirstBank aims to clarify what it describes as misleading narratives presented in various media outlets. The bank confirmed that it has a valid commercial transaction with GHL, having extended several credit facilities for the development of Oil Mining Lease assets, all governed by comprehensive loan agreements.

At the heart of the dispute lies FirstBank’s insistence on good governance and transparency, which GHL has reportedly rejected. After identifying breaches, including the diversion of funds, FirstBank sought to appoint an independent operator to oversee the financed assets, a request that GHL declined. Instead, GHL has initiated arbitration proceedings, leading to further complications.

FirstBank has filed a substantive claim against GHL at the Federal High Court concerning subsequent credit facilities, asserting that its legal actions are entirely separate from GHL’s arbitration claims. The bank argues that its actions are necessary to protect its interests and maintain the integrity of its lending practices.

In a reassuring message to its customers, FirstBank reiterated its commitment to supporting legitimate business endeavors and fostering a strong credit culture. With over 130 years of service, the bank remains steadfast in providing exceptional banking services while ensuring compliance with legal obligations.

Additionally, FirstBank expressed gratitude to shareholders for their enthusiastic support during its recent Rights Issue, highlighting the bank’s ongoing efforts to strengthen its capital base and enhance its financial stability.