- GHL Says, It’s Pressing for Charges Against First Bank
By Abiola Olawale
The escalating legal dispute between a prominent player in the oil and gas industry, General Hydrocarbons Limited (GHL) and Nigeria’s oldest financial institution, First Bank of Nigeria (FBN) has continued to take different twists and turns as the escalating war rages in and out of court rooms in Nigeria.
In a dramatic turn of events, several financial institutions across Nigeria have reportedly lifted a Mareva injunction obtained by First Bank, which imposed restrictions on all commercial banks from engaging with entities, assets or funds associated with GHL in connection with a contentious loan dispute amounting to a staggering $225.8 million.
The financial banks reportedly lifted the freezing order on Thursday and proceeded to unfreeze GHL accounts accordingly. This followed a court ruling that voided the original Mareva injunction obtained by First Bank.
According to the Court Papers sighted by The New Diplomat, the presiding judge predicated his ruling on grounds that the injunction obtained by FBN was said to have transgressed a subsisting order issued by a court of concurrent jurisdiction.
The submission signals a major dynamic in the legal brawl between FBN and GHL, as First Bank signals its readiness to dispute the judgement on interpretations grounds.
Recall that Justice Deinde Dipeolu of the Federal High Court in Lagos State, in a ruling on Wednesday, held that when compared with an earlier order issued by Justice Ambrose Lewis-Allagoa in Suit No. 1953, the Mareva injunction should be set aside.
The court found that First Bank of Nigeria and FBNQuest Ltd had failed to fully disclose Justice Lewis-Allagoa’s order, which made the injunction assailable, incomprehensible, and incompatible with the earlier cited ruling. The court further ruled that FBN failed to disclose that material fact, thereby attempting to repress material facts that misled the Court into granting a freezing order against General Hydrocarbons Ltd.
Reacting to the development, the management of the GHL declared that the law had finally taken its course.
The management criticised First Bank and its Chairman, Femi Otedola for allegedly spreading falsehood and misleading statements against the company.
The Statement reads in part: “Banks across the board have complied with the ruling of Justice Deinde Dipeolu of the Federal High Court delivered on the 29th of January 2025, lifting the Mareva injunction placed on GHL, its directors and shareholders.
“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 unambiguous ruling by the learned Judge.
“This falsehood is the latest in a pattern of deceit and dishonesty from First Bank of Nigeria, which 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 has thus 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.”
The New Diplomat reports that the recent developments come amid an escalating legal crisis that has been worsening between First Bank and GHL, showing no signs of resolution or relief.
At another front, FBN and its holding company FBH have been in battling to fountain raging issues, including an ongoing struggle and war for control over First Bank Holdings Plc between Chairman Femi Otedola and billionaire business mogul and one of Nigeria’s most legendary investors, Oba Otudeko.
