In a robust response to circulating media reports, FirstBank has clarified its stance on a legal matter involving a commercial loan transaction with GHL. While bound by the legal principle of sub-judice, the bank deemed it necessary to address misleading narratives.
At the heart of the matter lies a substantial loan arrangement between FirstBank and GHL, backed by comprehensive agreements outlining responsibilities and collateral. The bank disclosed that the current dispute stems from its demand for transparency and adherence to governance standards—standards GHL allegedly resisted, opting instead to divert proceeds from financed oil projects.
FirstBank revealed it had proposed appointing an independent operator to oversee the financed assets. This move, intended to ensure accountability and protect all stakeholders, was rebuffed by GHL, which instead sought additional funding. When GHL failed to fulfill the terms of further loan offers, it initiated arbitration proceedings.
Contrary to claims of impropriety, FirstBank stated it is the only party to file a substantive claim in court. The bank maintains that its legal actions were necessitated by GHL's repeated breaches, including the diversion of funds and non-payment of debts.
Reiterating its position as Nigeria’s oldest bank, with over 130 years of unbroken service, FirstBank emphasized its dedication to supporting legitimate businesses. The institution also expressed its commitment to fostering a robust credit culture, urging borrowers to honor their obligations.
"Our actions are aimed at preserving assets, recovering diverted proceeds, and ensuring the protection of all stakeholders’ interests. FirstBank stands firmly against illegalities and contract breaches," the statement read.
Amid the legal wrangling, FirstBank assured customers of its steadfastness and commitment to gold-standard banking services. The bank also extended gratitude to shareholders for the resounding success of the first phase of its parent company First Holdco Plc’s capital raise, expressing optimism for the next phase.
While legal proceedings unfold, FirstBank remains resolute in its mission to deliver exemplary financial solutions, fostering trust and excellence in Nigeria and beyond.
