Business

First Bank Reacts to Contempt Charge on Chairman, MD

Published

8 years ago

June 10, 2018

Editor

First Bank has released a comprehensive and extensive statement four days after Honourable Justice I.N Buba of the Federal High Court, Lagos Judicial Division, granted a motion in SUIT NO: FHC/L/NRJ/1/2018 committing the Chairman and Managing Director of FirstBank of Nigeria Ltd. for contempt Ex Facie Curiae.

First Bank’s Chairman and CEO were committed for contempt with respect to an order given by the same Honourable Justice I.N Buba on 14th June, 2010, in Suit No: FHC/PH/CS/231/2001 Chief Isaac Osaro Agbara & 9 Ors. v. Shell Petroleum Development Ltd, Shell International Petroleum Ltd and Shell International Exploration and Production BV.

The bank, in its statement, said “We are constrained to issue the following statement to set the records straight and correct the erroneous reporting contained in some media publications.”

Explaining in copious detail the origin of the suit and how it affects First Bank, the statement noted that “FirstBank of Nigeria Limited (FirstBank) was not a party to the suit” before going ahead to show that “His Lordship’s earlier orders did not direct either FirstBank or its Board members to perform any obligation, neither did it impose any task on FirstBank.”

The statement, therefore, averred that the bank and officers could not “not have disobeyed any order made by Honourable Justice I.N Buba in Suit No: FHC/PH/CS/231/2001 Chief Isaac Osaro Agbara & 9 Ors. V. Shell Petroleum Development Ltd, Shell International Petroleum Ltd and Shell International Exploration and Production BV (Shell) made on 14th June 2010, since there was no order made against it.”

First bank sought to explain further, through its statement, that it is not a direct party to the suit and is only connected because it obliged Shell’s request for it to provide a bank gurantee. “Shell, as FirstBank’s customer, approached it to issue a Bank Guarantee to satisfy Shell’s Compliance with the Order of Honourable Justice I.N. Buba of 5th August 2010, and FirstBank obliged Shell’s request by issuing the Guarantee. Specifically, the Guarantee concluded as follows: This Guarantee shall be governed by and subject to all the laws of the Federal Republic of Nigeria and shall not be construed to fetter or limit the constitutional rights of parties, including their right of appeal.”

First Bank found it pertinent to note that Shell, which is the concerned party in the suit, was not held to being contempt. According to their statement “It is pertinent to note that Shell that was the party and defendant to Honourable Justice Buba’s earlier judgment and Orders has not been held to be in contempt.”

Going further, the statement noted that there is a “garnishee proceeding” pending before the same judge. According to First bank “While the Bank respects the institution of the judiciary, however, it states with much respect, that:

a. No liability is due from it to Chief Isaac Agbara & ors. from the Bank Guarantee issued and dated 17th December 2012.

b. Further to (a) above, no law criminalises breach of an undertaking, how much more criminal liability for imprisonment upon such alleged breach. The Bank further states that in respect of the same contempt proceedings in which the Honourable Justice Buba has convicted its officials, garnishee proceedings for the enforcement of the same judgment are pending before the same Buba J., which he has adjourned to 19th June 2018.”

What this then means, according to First Bank is that, it is facing two proceedings before the same judge. “In effect, before the same Buba J., the Bank is subjected to two proceedings, one penal and one civil, for the enforcement of the judgment of the same Buba J. It is worthy of note that no court has awarded any monetary liability against FirstBank and in favour of Chief Isaac Agbara & Ors. Also, the same Federal High Court which has now convicted the officials of FirstBank, had earlier dismissed all the claims of the same Chief Isaac Agbara & Ors. in the Winding Up Petition filed against FirstBank, on the same guarantee and in respect of the same sum and judgment of Buba J.”

Restating its bonafides as a law abiding corporate entity, First bank concluded by stating that it will remain, calm steadfast and law abiding despite harassment and intimidation. “Finally, in the face of constant, persistent and unprovoked use of judicial processes to intimidate, harass and threaten the Bank, it has decided to remain calm, steadfast and unflinching in its resolve to continue to provide first-class services to its teeming customers within and outside the country. FirstBank further asserts that it will always defend its interests within the ambit of the law and seek redress for any temporary injustice done to it. The Bank is not aware and has not been advised as to the provision of any law in Nigeria which allows the use of criminal contempt to enforce monetary judgements or obligations.”

Business

FirstBank, Subsidiary of FirstHoldCo, Meets ₦500bn Regulatory Capital Requirement

Published

7 days ago

January 6, 2026

Eric

First HoldCo Plc (“FirstHoldCo” or “the Group”) has announced that its commercial banking subsidiary, First Bank of Nigeria (FirstBank), has successfully met the Central Bank of Nigeria’s (CBN) minimum capital requirement of ₦500 billion. This milestone was achieved following the completion of a series of strategic capital initiatives, including a Rights Issue, a Private Placement, and the injection of proceeds from the divestment of the Group’s merchant banking subsidiary.

This successful capitalisation underscores strong market confidence in FirstHoldCo Group’s business model, long-term strategy, and growth prospects. With a fortified capital base, FirstBank is positioned to accelerate its support for the real sector, enhance financial inclusion, and deliver innovative, digitally driven customer experiences.

The recapitalisation strengthens the Group’s overall financial resilience, providing a robust platform for earnings growth through business expansion, technological innovation, and the pursuit of new opportunities.

In March 2024, the CBN directed commercial banks to raise their capital base to a minimum of ₦500 billion within a 24-month period to bolster the Nigerian banking sector’s stability and capacity. FirstBank has now fulfilled this requirement well ahead of the regulatory deadline.

In a related development, FirstHoldCo have expressed its desire to raise fresh funding and inject additional capital into the Group’s existing subsidiaries and new business adjacencies in 2026. This forward-looking commitment is aimed at further enhancing service offerings and facilitating strategic expansion.

Commenting on the achievement, Mr. Femi Otedola, CON, Chairman of First HoldCo Plc, said: “On behalf of the Board, I extend our profound gratitude to our shareholders for their trust and unwavering support throughout this capitalisation programme. From the oversubscribed Rights Issue to the seamless Private Placement, investors have demonstrated resounding confidence in our strategic direction. Securing FirstBank’s capital base ahead of schedule is a testament to our collective commitment and positions us firmly for our next growth phase. We also appreciate the professional guidance of the CBN and SEC throughout this process.”

Mr. Wale Oyedeji, Group Managing Director of First HoldCo Plc, added: “This successful capital raise is a pivotal milestone for FirstHoldCo. It provides us with the financial strength to execute our core strategic priorities: driving innovation, delivering superior customer value, and enhancing sustainable profitability. With this solid foundation, we are focused on accelerating performance, improving competitive returns, and delivering lasting value to all our stakeholders.”

Business

Heirs Energies Executes $750m Afreximbank Financing to Drive Long-Term Growth

Published

3 weeks ago

December 22, 2025

Eric

Heirs Energies Limited, Nigeria’s leading indigenous integrated energy company, has executed a USD 750 million financing with the African Export–Import Bank (Afreximbank).

The transaction was concluded at a signing ceremony in Abuja on Saturday 20th December 2025, attended by Mr. Tony O. Elumelu, CFR, Chairman of Heirs Energies, and Dr. George Elombi, President and Chairman of Afreximbank.

The transaction represents one of the largest financings secured by an indigenous African energy company and demonstrates lender confidence in Heirs Energies’ operating performance, governance standards, proprietary brownfield excellence capability, and long-term growth trajectory.

Since assuming operatorship of OML 17, Heirs Energies has delivered a disciplined transformation programme, focused on restoring production, strengthening asset integrity, and improving operational efficiency. Through targeted brownfield interventions and infrastructure optimisation, the Company has successfully transitioned from acquisition-led financing to a capital structure aligned with the long-term development profile of its reserves.

Oil and gas production has doubled, from an acquisition production level of 25,000 barrels of oil per day (bopd) and 50 million standard cubic feet of gas per day (mmscf/d). Today, OML-17 produces over 50,000 bopd and 120 mmscf/d. All the gas production goes into the Nigerian domestic gas market and has been catalytic for power generation in Nigeria. Community relations have been transformed and the highest standards of health and safety implemented.

The Afreximbank facility will accelerate field development, optimise production, and allow Heirs Energies to pursue value-accretive growth opportunities, while maintaining disciplined capital management.

Speaking at the signing, Mr. Tony O. Elumelu, CFR, Chairman of Heirs Energies, said:

“This transaction is a powerful affirmation of what African enterprise can achieve when backed by disciplined execution and long-term African capital. It reflects the successful journey Heirs Energies has taken – from turnaround to growth – and reinforces our belief in African capital working for African businesses. This is Africa financing Africa’s future.”

Dr. George Elombi, President and Chairman of Afreximbank, stated:

“Afreximbank is proud to support Heirs Energies at this pivotal stage of its growth. This financing reflects our confidence in the Company’s leadership, governance, and asset base, and aligns with our mandate to support African champions that are driving sustainable economic transformation across the continent.”

The transaction further reinforces Afreximbank’s role in enabling indigenous operators with the scale and capability to deliver sustainable energy development, energy security, and long-term economic value across Africa.

With this milestone achieved, Heirs Energies is firmly positioned to advance into its next phase of growth, focused on operational excellence, responsible resource development, and enduring value creation for stakeholders.

Heirs Energies Limited is Africa’s leading indigenous-owned integrated energy company, committed to meeting Africa’s unique energy needs, while aligning with global sustainability goals.  Having a strong focus on innovation, environmental responsibility, and community development, Heirs Energies leads in the evolving energy landscape and contribute to a more prosperous Africa.

The African Export-Import Bank is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. The Bank plays a critical role in supporting Africa’s industrialisation, trade expansion, and economic transformation.

Picture: Chairman, Heirs Energies, Mr. Tony O. Elumelu CFR and President and Chairman of the African Export-Import Bank (Afreximbank), Dr. George Elombi, during the signing ceremony to mark the execution of a USD 750 million Financing Transaction between Heirs Energies and the Afreximbank in Abuja on Saturday

Business

NNPCL Slashes Fuel Price by N80

Published

4 weeks ago

December 19, 2025

Eric

The Nigerian National Petroleum Company Limited (NNPCL) has effected another reduction in the pump price of petrol, marking the third cut this December.

A survey of filling stations in Abuja on Thursday showed that the state-owned oil company lowered the price to N835 per litre from N915, reflecting a N80 reduction.

The latest adjustment follows similar moves by independent marketers, including MRS, BOVAS and AA Rano, which recently reviewed their pump prices to between N739 and N865 per litre across the Federal Capital Territory.

Findings indicate that the downward review by NNPCL and other marketers was triggered by a drop in ex-depot prices, after Dangote Refinery and depot owners reduced rates to between N699 and N800 per litre.

NNPCL and several filling stations had earlier reduced fuel prices on December 4 and December 10, 2025, as competition and supply dynamics continued to influence pricing in the downstream sector.