- FBN Holdings Chairman Femi Otedola emphasized his commitment to protecting First Bank’s integrity amid a dispute over a $230 million loan
- Otedola accused GHL of misappropriating loan funds for personal expenses, asserting that legal actions are necessary to recover depositor funds
The Chairman of FBN Holdings, Mr. Femi Otedola, has reiterated his dedication to safeguarding the integrity of First Bank, Nigeria’s oldest financial institution.
His remarks followed a public dispute with the Chairman and Publisher of This Day and Arise News Channel, Mr. Nduka Obaigbena, over a $230 million loan involving General Hydrocarbons Limited (GHL), owners and operators of OML 120 in Deep Offshore Nigeria.
The disagreement centers around allegations of loan misuse by GHL. A federal high court in Lagos has issued a directive restraining Nigerian commercial banks from releasing funds or handling assets belonging to the oil company.
Obaigbena defended the oil firm’s stance, asserting that legal proceedings and arbitration were underway to resolve the matter, with a court order protecting GHL’s operations pending resolution.
“Unfortunately, First Bank continues to disregard and disobey a subsisting court judgment in favor of GHL, choosing instead to mislead the public,” Obaigbena alleged.
In response, Otedola accused GHL’s leadership of resorting to evasive tactics to avoid repaying the loan.
“This loan, facilitated by the former Central Bank of Nigeria Governor, Mr. Godwin Emefiele, was purportedly for the operation of an oil block obtained without competitive bidding.
However, the funds were misappropriated for personal expenses, including financing presidential ambitions, acquiring luxury properties abroad, operating a private jet, and spending an extravagant $68 million on jet rentals over four years,” Otedola stated.
As Chairman of First Bank Holdings, Otedola emphasized his responsibility to protect the bank’s shareholders and depositors.
“The legal actions taken are necessary to recover depositor funds and uphold corporate governance,” he added.
Otedola affirmed his unwavering commitment to protecting depositors’ money and maintaining the bank’s reputation.
“My integrity remains unquestioned. As Chancellor of Augustine University and a benefactor of Save the Children Fund, I continue dedicating my resources to noble causes. I will not allow unscrupulous elements to derail First Bank’s recovery efforts or jeopardize the financial security of our stakeholders,” he assured.
He concluded by reaffirming his resolve: “I remain steadfast in my mission to protect First Bank’s integrity and ensure its continued success. Media blackmail will not deter me from fulfilling this responsibility.”
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