First Bank Shareholders Suffer N66.4bn Loss Amidst Battle With General Hydrocarbon

Investors’ sentiments on First Bank of Nigeria Holding (FBNH) shares have been on a gradual decline since the battle between the lender and General Hydrocarbons Limited (GHL) sparked public debate.

First Bank shares have lost over 5.8 per cent of their value from N30.9 per share on Monday, January 30, 2025, to N29.1 per share on Thursday, January 30, 2025.

Based on data analysed by THE WHISTLER, shareholders have lost N66.4bn after the company’s market capitalisation fell from N1.11tn on Monday to N1.04tn on Thursday.

FBN began the year with a share price of N28.05 and has since gained 3.74 per cent on price valuation, ranking 73rd on the NGX in terms of year-to-date performance.

But the gains are on gradual decline over the case which evolves around funding for Oil Mining Licence 120 and a disputed $225.8m loan.

The gradual decline has triggered panic on the First Bank Board as the Board Chairman, Femi Otedola shared a post on X, on Thursday suggesting to investors that the bank has the upper hand in the case which is in court.

On Wednesday, GHL secured a court order unfreezing its assets and that of its directors blocked by First Bank of Nigeria following the disputed oil deal.

First Bank had secured orders freezing the firms account and the accounts linked to directors of GHL over the alleged $225.8m debt.

GHL alleged that First Bank failed to fulfill its obligations under their agreement to explore and develop an oil asset- Oil Mining Lease (OML) 120.

The company said First Bank’s alleged breach of contract caused GHL severe losses, including over $47m and 217 days of lost operations.

In a twist, the Federal High Court overturned the Mareva injunction after arguments presented by GHL’s legal counsel, Abiodun Layonu, SAN, and Olumide Aju, SAN, who represented the second to fifth defendants in the case.

Justice Dehinde Dipeolu ruled that the Mareva injunction was in violation of a prior order from a court of concurrent jurisdiction.

Justice Dipeolu referred to an earlier order issued by Justice Ambrose Lewis-Allagoa in Suit No. 1953.

Justice Dipeolu found that the injunction sought by First Bank of Nigeria and FBNQUEST LTD had failed to disclose Justice Lewis-Allagoa’s order, making the Mareva injunction incompatible with the prior ruling.

The court ruled that First Bank had deliberately “suppressed facts”.

But Otedola on X shared a post that all the court injunctions secured by First Bank against GHL have not been set aside.

First Bank Shareholders Suffer N66.4bn Loss Amidst Battle With General Hydrocarbon is first published on The Whistler Newspaper