FirstBank’s Response To Reports On Lifting Of Restrictions

FirstBank’s Response to Reports on Lifting of Restrictions

FirstBank Nigeria Plc has refuted claims that banks have lifted the lien on the accounts of General Hydrocarbons Limited (GHL). The bank clarified that while the Federal High Court in Lagos recently lifted the Mareva order on GHL’s assets and accounts, full compliance with this order is still in process.

Following the court’s decision, GHL publicly stated that banks had already removed all restrictions from its accounts, as well as those of its directors and stakeholders. However, FirstBank has labeled this claim as misleading, explaining that compliance with such legal directives involves a structured process that has not yet been finalized.

Legal Standpoint: Why FirstBank Is Holding Back

In an official statement titled “Re-misinformation on Mareva Injunction on GHL,” FirstBank stressed that it had already appealed the court’s decision and requested an injunction to suspend the lifting of the restrictions until the appeal is determined.

The bank emphasized that until the appeal process is resolved, all concerned parties, including banks, are expected to maintain the status quo. This means that restrictions on GHL’s accounts remain in place until further legal clarifications are made.

Commitment to Legal Resolution

FirstBank reassured its shareholders, depositors, and stakeholders that it remains committed to handling the situation transparently and lawfully. The bank also vowed to explore all legal avenues to recover debts owed by GHL.

A part of the official statement read:

“Our attention has been drawn to recent media reports suggesting that some banks have begun complying with the ruling of Honourable Justice Deinde Dipeolu of the Federal High Court, Lagos, which lifted the Mareva order on the assets of General Hydrocarbons Limited (GHL), its directors, and shareholders. We would like to state that such action is premature, as the necessary steps for compliance have not yet been completed.”

“Notwithstanding, FirstBank has appealed against the discharge of the Mareva order and has applied for an injunction and/or suspension of the discharge order, pending the determination of the appeal. Given the pending appeal and Motion for Injunction, banks are required to maintain the status quo.”

The Root of the Legal Dispute

The conflict between FirstBank and GHL stems from an outstanding debt of $225.8 million, which was granted as a loan for oil mining operations. FirstBank claims it fulfilled its obligations under the loan agreements but has accused GHL of lacking transparency and good governance.

FirstBank’s Assurance to Stakeholders

FirstBank reassured all stakeholders that it remains financially stable and strong. The bank reaffirmed its commitment to ensuring that debtors fulfill their obligations and that it will continue pursuing all necessary legal actions to recover the funds.

“We wish to assure our valued stakeholders that FirstBank remains strong, stable, and fully committed to resolving this issue in line with the provisions of the law. We are actively addressing all matters with transparency and diligence, while remaining focused on protecting the interests of our shareholders and depositors.”

Conclusion

While the court order lifting restrictions on GHL’s accounts has been issued, FirstBank maintains that compliance is not immediate due to its ongoing appeal. The legal process must be completed before any changes take effect. In the meantime, restrictions remain in place as the bank seeks to recover the outstanding debt.