In a fiery rebuttal, Femi Otedola, CON, Chairman of First Bank Holdings, has accused Nduka Obaigbena, Chairman of THISDAY/ARISE Media Group, of orchestrating a smear campaign through the media to deflect attention from his alleged financial improprieties. Otedola’s statement comes amid escalating tensions surrounding First Bank’s efforts to recover funds purportedly misappropriated in deals tied to Obaigbena.

Otedola alleged that Obaigbena obtained a $230 million loan, facilitated by former Central Bank Governor Godwin Emefiele, under the pretense of funding oil block operations. However, he claims the funds were diverted for personal use, including luxury property acquisitions, jet operations, and political aspirations.

He emphasised his commitment to protecting shareholders and depositors, rejecting Obaigbena’s alleged use of media blackmail to escape accountability.

Otedola stated: “Mr. Obaigbena’s penchant for blackmailing people to escape accountability must end, especially when depositors’ money is at stake. My commitment to upholding the integrity of the financial system and protecting depositors outweighs any cheap attempts at blackmail.

“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 jeopardise 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,” he added.

Otedola’s statement came as General Hydrocarbons Limited (GHL) denied owing the bank $225 million. GHL’s Director of Strategy and Operations, Abdelmuizz Bello, stated that First Bank’s claims were “misleading and malicious,” adding that a Federal High Court judgment had previously ruled in GHL’s favour.

Bello outlined the origins of the dispute, rooted in a Subrogation Agreement signed in 2021. Under the agreement, First Bank was to fund GHL’s exploration and development of OML 120, sharing profits from oil production in a 50:50 ratio after statutory payments. GHL insists that the alleged debt is premature, as repayment hinges on commercial oil production profits.

The company also accused First Bank of breaching funding agreements, causing operational inefficiencies and losses exceeding $147 million. Bello contended that all payments were vetted and approved by First Bank’s credit and risk teams, challenging allegations of fund diversion.

Despite a subsisting court order restraining First Bank from enforcing debt claims or interfering in GHL’s operations, the bank secured a controversial Mareva injunction, freezing GHL’s accounts. Bello criticised this as a “weaponisation of legal processes” to undermine GHL and confuse public perception.

Both cases highlight significant governance and financial disputes, with Otedola underscoring First Bank’s resolve to recover funds for its stakeholders. Meanwhile, GHL maintains its position that the bank’s actions are unwarranted, as it seeks alternative financing to sustain its operations.

Observers are keenly watching the unfolding legal and reputational battles, which pit high-profile individuals and organisations against each other in a contest of accountability, corporate integrity, and financial responsibility.