Business

First Bank Reacts to Contempt Charge on Chairman, MD

Published

6 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 Appoints New MD/CEO, Alebiosu

Published

4 days ago

April 22, 2024

Eric

First Bank of Nigeria has appointed Olusegun Alebiosu as its new Managing Director with effect from April 2024.

The Bank stated this in a release signed by its acting company secretary Adewale Arogundade.

Alebiosu takes from Adesola Adeduntan, who resigned abruptly on Saturday with eight months left to complete his tenure in December 2024.

The release stated that “following the resignation of the managing director/CEO of FirstBank, Dr. Adesola Adeduntan, the Board of Directors has appointed Olusegun Alebiosu as the acting CEO of the 130-year-old institution.

“The appointment takes effect immediately and is subject to the approval of the Central Bank of Nigeria.”

The release stated that Alebiosu was until this appointment the executive director, chief risk officer and executive compliance officer since January 2022. Prior to that, he was the Group executive/ chief risk officer, a position he held since 2016.

“Alebiosu brings to the executive management of FirstBank over 28 years’ experience in the banking and financial services industry with cross-functional exposure to Credit risk management, Financial planning and control, Credit and marketing, Trade, Corporate and commercial banking, Agriculture financing, Oil and Gas, Transportation (including Aviation and Shipping) and Project financing.”

It added that the new acting MD/CEO commenced his professional career in 1991 with Oceanic Bank Plc (now EcoBank) and prior to joining FirstBank in 2016 served as Chief Risk Officer at Coronation Merchant Bank Limited, Chief Credit Risk Officer at African Development Bank Group and Group Head, Credit Policy & Deputy Chief Credit Risk Officer at United Bank for Africa Plc.

“He is an alumnus of Harvard School of Government and holds a Bachelor’s degree in Industrial Relations and Personnel Management. He also obtained a Master’s degree in International Law and Diplomacy from the University of Lagos and holds a Master’s degree in Development Studies from the London School of Economics and Political Science.

“He is a member of various professional bodies namely, Fellow, Institute of Chartered Accountants (FCA), Associate, Nigeria Institute of Management (ANIM), Chartered Institute of Bankers of Nigeria (CIBN) and Member, Nigeria Institute of International Affairs.”

Business

Again, Naira Slumps Against Dollar, Trades at N1,169/$1 in Official Window

Published

5 days ago

April 20, 2024

Eric

The Naira, on Friday, slumped for the second consecutive day against the American dollar at the official window trading at N1,169/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

At the end of trading on Friday, the Naira lost N15 against the dollar when compared to the previous exchange rate of N1,154/$1 on Thursday, April 18, 2024.

The intra-day high and low recorded during the day were N1,236/$1 and N1,021/$1 respectively, representing a lean spread of N215/$1.

Similarly, the Naira slumped against the dollar at the parallel market for the second consecutive day to trade at N1,150/$1 representing a loss of N50 when compared to the N1,100/$1 it traded the previous day.

The British Pound also slumped against the Naira by N50 to trade at N1,500/£1 as against the previous trading price of N1,450/£1 representing a loss of N50 for the local currency,

The Canadian dollar however closed flat against the Naira to trade at N1,000/CA$1 same as the previous trading day rate of N1,000/ CA$1.

The Euro also slumped against the Naira to trade at N1, 280/€1 as against the rate of N1,200/€1 the previous trading rate indicating a gain of N80 in the European currency.

Business

Glo Launches New Internet Solution Products for Homes, Businesses

Published

3 weeks ago

April 8, 2024

Eric

Two new products, which provide internet connectivity solutions specially designed for Residential and SME commercial customers, have been unveiled by digital solutions company, Globacom.

The products, Fibre to the Home (FTTH) and Fibre to the Business (FTTB) were packaged for Glo customers to enjoy reliable and high speed internet through linked fibre services.

Globacom said in a statement in Lagos “With these services, businesses and homes can access dedicated internet speeds of up to 1GBps, allowing unlimited internet usages for seamless video calls, video and music streaming and a whole lot of other dedicated usages to promote business success and equally provide endless entertainment for homes”.

It explained that the new product comes with a unique opportunity for “Residential Estates, High Rise Apartments, Commercial SME Estates to enjoy dedicated high speed internet in their cluster”.

These services, according to Globacom, give exceptional experience and unmatched speed for users at home or in offices and are provided through hi-speed fibre – unlike copper which was being used in the past.

Positioning itself as the premier provider of innovative solutions for businesses of all sizes, Globacom assured customers of the best value for money with the new offerings, adding that users who sign on for these services will also enjoy fully dedicated bandwidth.

“We are committed to delivering the most cost-effective data connectivity experience for homes and businesses in addition to providing dedicated and reliable services.” Globacom concluded.