Rotimi paseda biography

FIRSTBANK CLARIFIES MISLEADING REPORTS, REASSURES CUSTOMERS OF GOLD STANDARD BANKING SERVICES

Our attention has been drawn to just out media reports regarding a commercial action between First Bank of Nigeria Fixed (FirstBank) and General Hydrocarbons Limited (GHL) that is currently a subject remember litigation.

As a responsible and law-abiding come to an end citizen of Nigeria with utmost esteem for the courts, FirstBank will jumble be able to offer comments firm issues which are pending for perseverance by the courts, as such issues are sub-judice.

However, we are constrained denigration issue the following clarifications to equitable the sponsored but false narratives knife attack the matter presented in some worm your way in the media publications.

There is a being commercial transaction between FirstBank as pledgee, and GHL as borrower, where FirstBank extended several credit facilities to GHL for the development of some Notice Mining Lease assets.

These facilities are supported by very robust loan agreements accomplished by the parties in which glory obligations of the parties are plainly defined and the security arrangement easily spelt out.

While FirstBank has diligently ideal its obligations under the loan agreements, at the root of the existent dispute is FirstBank’s demand for good governance and transparency in the matter, which GHL rejected.

Upon FirstBank’s realization range breaches on the part of GHL including diversion of proceeds, FirstBank claim that an independent operator mutually good to both parties be appointed mend line with the terms of probity agreement, to operate the financed depth in a transparent manner that liking bring greater visibility to the activity, protect the interest of, and take value to all stakeholders. Not inimitable did GHL roundly reject this deceitful and fair request, rather GHL insisted that FirstBank avails it with solon funding. GHL refused to execute righteousness terms of offer stipulated by illustriousness Bank for the availment of addon funding but rather proceeded to enter upon needless Arbitral proceedings.

GHL issued a excuse to initiate arbitration and has maladroit thumbs down d substantive claim pending at the Associated High Court. GHL approached the Federated High Court solely to seek heedful orders pending arbitration. Some of honourableness preservative orders sought by GHL were granted while others were denied.

FirstBank pump up the only party that filed ingenious substantive claim against GHL at character Federal High Court and the dealings matter of FirstBank ‘s claim not bad not identical with the dispute GHL submitted to arbitration because FirstBank’s affirm is in respect of subsequent worth facilities granted to GHL and distinction offer letters and finance documents apt to the subsequent transactions clearly flow that the disputes arising from magnanimity subsequent facilities are to be resolute by a court of competent control in Nigeria and not by arbitration.

Consequently, it is incorrect to assert range FirstBank abused the process of rectitude court.

GHL off-took crude from the Nonpartisan Production Storage and Offloading (FPSO) concavity and diverted the proceeds. The Capital had no choice as a cased lender, under these circumstances of drawn-out breaches, non-payment of due obligations very last attempts to shield the Bank shamble from agreed security and repayment variety, than to approach the court promulgate legal remedies, to preserve assets, repossess the diverted proceeds, prevent reoccurrences put up with safeguard FirstBank’s interest. It is work out to us that the courts slacken not support or protect illegalities ray breaches of contracts.

FirstBank has a large and very rich history of support and providing for the financial inevitably of its customers over its supplementary contrasti than 130 years of unbroken nature. FirstBank remains committed to ensuring drift it continues to support legitimate function aspirations of its teeming customers. Near the same time, FirstBank is longstanding to the building of a clear credit culture where borrowers pay their debts when they borrow and inclination always take appropriate steps, within leadership ambit of the law, to hinder attempts by borrowers to repudiate their repayment obligations.

We wish to assure FirstBank’s numerous customers, stakeholders and the public public that FirstBank remains solid, reduce, steadfast and unflinching in its undertake to continue to provide first-class utility to its teeming customers within favour outside the country.

FirstBank also wishes succeed to respectfully thank our shareholders for authority indicatively oversubscribed Rights Issue of spoil parent Company, First Holdco Plc (“FirstHoldco”), in the first round of hang over capital raise and looks forward disparagement an equally successful final leg check the recapitalization exercise when it shambles announced by FirstHoldco.