FBN: why banks cannot comply with order lifting restrictions on GHL’s accounts

The enforcement of the Mareva Injunction against General Hydrocarbons Limited (GHL) has encountered a significant setback as First Bank of Nigeria has declared that the necessary conditions for compliance with the court’s decision are yet to be fulfilled.

This revelation has stalled the expected implementation of the injunction, as banks can only proceed once all legal requirements have been met. The situation underscores the complexities surrounding the case, which continues to generate attention in Nigeria’s financial and legal circles.

Despite the court lifting the Mareva order, First Bank has disclosed that it has appealed the decision and has also filed for an injunction or suspension of the discharge order pending the outcome of the appeal.

The bank emphasised that while the appeal remains unresolved, all involved parties, including financial institutions, are expected to maintain the status quo and refrain from any premature actions.

This clarification follows reports that some banks have allegedly begun complying with the ruling of Honourable Justice Deinde Dipeolu of the Federal High Court, Lagos, which lifted the injunction on GHL’s assets, directors, and shareholders.

In a statement issued to the Nigerian Tribune, First Bank clarified that reports of banks taking steps to act on the court’s decision were premature, as key compliance conditions remain outstanding.

“We would like to state that such action is premature, as the necessary steps for banks and stakeholders to comply with the court’s decision have not yet been completed,” the bank stated.

The bank’s position signals that despite the legal ruling, financial institutions must ensure full adherence to regulatory and procedural requirements before executing any changes related to the case.

First Bank reiterated its commitment to safeguarding the interests of its shareholders, depositors, and stakeholders. The institution vowed to pursue all available legal avenues to recover outstanding debts from defaulters while ensuring that obligations are met.

“FirstBank remains committed to protecting the interests of its shareholders, depositors, and stakeholders. We will continue to pursue all available legal avenues to recover unserviced debts from debtors, ensuring that those who have defaulted on their obligations are held accountable,” the statement read.

The bank also assured customers and investors of its continued stability, strength, and transparency in addressing the matter.

“We wish to seize this medium to assure all our valued stakeholders that FirstBank remains strong, stable, and fully committed to resolving this issue in line with the provisions of the law. We are actively addressing all matters at hand with transparency and diligence while remaining focused,” the statement concluded.

With the appeal still pending, the final resolution of the case remains uncertain, and industry watchers will be monitoring developments closely.

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