Femi Otedola Breaks Silence on Alleged $230m Loan By GHL, Sends Clear Message
- Femi Otedola has shared his plans for the bank amid reports of a possible move to remove him from his position
- The charismatic billionaire investor reaffirmed his commitment to upholding the vision and integrity of First Bank
- There is a legal tussle is ongoing between First Bank and Nduka Obaigbena regarding a $230 million loan involving General Hydrocarbons Limited (GHL)
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Femi Otedola, the Chairman of FBN Holdings, the parent company of First Bank, has reiterated his dedication to the financial institution.
In a message reacting to the ongoing heated dispute with Nduka Obaigbena, the Chairman and Publisher of ThisDay and Arise News Channel, Otedola said he is determined to preserve the integrity of First Bank of Nigeria.
Source: Getty Images
The disagreement between Otedola and Nduka, seemingly resulting in a media war, centres on allegations surrounding a $230 million loan, reportedly secured by GHL, the owners and operators of OML 120, a deep offshore oil block in Nigeria.
Legit.ng reported that a Federal High Court in Lagos issued an order restraining all commercial banks in Nigeria from releasing funds or handling assets belonging to the oil firm.
In response, Obaigbena has defended GHL, stating that the matter is currently in court and arbitration for resolution.
He confirmed that the oil firm has obtained a court order safeguarding its operations pending a final determination.
His words"
“We hope for a favourable outcome under our system of justice. Unfortunately, First Bank continues to disregard and disobey a subsisting court judgment in favour of GHL and instead has chosen to mislead the public."
Otedola responds to Obaigbena
In a statement, Otedola countered Obaigbena's claims, accusing the GHL Chairman of employing diversionary tactics, DailyTrust reports.
Otedola alleged.
. “This loan, facilitated with the help of the former Central Bank of Nigeria Governor, Mr. Godwin Emefiele, was purportedly for the operation of an oil block, which he obtained without competitive bidding.
"However, the funds were diverted for personal use – funding Mr. Emefiele’s presidential aspirations, acquiring luxury properties abroad, operating a private jet, and spending an extravagant $68 million on jet rentals in just four years."
As Chairman of FBN Holdings, Otedola also stressed his responsibility to safeguard the interests of the bank’s shareholders and depositors.
He added:
“The actions initiated in the courts are necessary to recover funds that belong to depositors and ensure corporate governance.
“Let me remind the public that my integrity is not in question. As Chancellor of Augustine University and a benefactor of Save the Children Fund, I continue to dedicate my wealth to noble causes.
"I will not allow unscrupulous elements to derail the efforts of First Bank to recover loans or jeopardize the financial security of our shareholders.”
“To all stakeholders, I assure you that I remain steadfast in my mission to protect First Bank’s integrity and ensure its continued success. Media blackmail will not deter me from this responsibility.”
Shareholders reject calls for Otedola’s removal
Ealier, Legit.ng reported that some First Bank shareholders have reacted to plans to remove Otedola as bank chairman.
The group of shareholders also backed the reported plans by Otedola for a N350 billion private placement.
The shareholders dismissed calls for an extraordinary general meeting and said the move was in the bank’s best interest.
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Source: Legit.ng
