First Bank of Nigeria Limited has dismissed recent media reports accusing it of abusing court processes in its legal dispute with General Hydrocarbons Limited (GHL), labelling them as false and misleading.

In a statement issued on Tuesday, the bank clarified that it had met its obligations under the terms of the loan agreements. The dispute, according to First Bank, arose after it demanded good governance and transparency in the transactions – demands allegedly rejected by GHL.

The bank stressed its respect for the judiciary and declined to comment further, citing the sub-judice status of the matter.

However, First Bank expressed concern over what it termed “sponsored false narratives” circulating in the media. It stated that the legal dispute stems from a commercial transaction in which it provided significant credit facilities to GHL for the development of Oil Mining Lease (OML) assets. The credit facilities, the bank added, were governed by robust loan agreements that clearly outlined the obligations of both parties and detailed security arrangements.

The bank alleged that GHL’s breaches, including diversion of proceeds, prompted it to request the appointment of an independent operator to manage the financed assets transparently, in accordance with the agreement.

When GHL failed to comply, First Bank initiated legal action to protect its interests. It also criticised GHL for pursuing “unnecessary arbitral proceedings” in response.

First Bank affirmed that its actions were necessary to safeguard its assets, recover diverted funds, and prevent similar breaches in future.

The bank assured customers, stakeholders, and the public of its commitment to providing first-class services, both locally and internationally. It also acknowledged the oversubscription of its parent company’s Rights Issue during the first round of its capital raise and expressed optimism about the final phase of the recapitalisation exercise.