First Bank Vs Obaigbena:  Smear Campaign Against Me Will Not Stop Recovery of Over $700m Debt- Otedola

By James Orji

Femi Otedola, the Chairman of First Bank Nigeria Holdings, FBNH,  says he will not be deterred by alleged smear campaign against him by Prince Nduka Obaigbena, intended to stop the recovery of $718 million debt allegedly owed the  commercial bank by the latter.

FBNH is the parent company of First Bank Nigeria Limited, FBN.

The magazine reports that a company promoted by Obaigbena, General Hydrocarbons Limited, GHL, is currently enmeshed in a loan saga with Nigeria’s oldest bank.

Otedola  said what mattered to him is the interest of the commercial bank’s shareholders, and no media campaigns can stop the recovery of the humongous loan, allegedly, owed by Obaigbena.

On December 30, the Federal High Court  in Lagos, ordered all banks operating in Nigeria to freeze all the banks accounts operated by GHL and Obaigbena, including those of Efe Damilola Obaigbena and Olabisi Eka Obaigbena.

It was granted following a debt recovery suit filed by the bank against GHL.

The order was issued by Justice Deinde Dipeolu in suit FHC/L/CS/2378/2024, who directed all the banks operating in the country to stop condcuting  financial transactions with  the  Obaigbenas until the loan issue is resolved.

As at the time the order was issued, over $225m belonging to Obaigbena and his other concerns held in these banks were frozen.

Obaigbena, in his response to the court order said the loan was used appropriately to finance the operation of OML 120, Deep Offshore Nigeria, for which First Bank has benefited as a partner.

He claimed that the deal rescued First Bank from the ‘abyss’, because “through our collaboration, we have resolved FBN’s financial challenges and discovered crude oil to the glory of Nigeria”.

But reacting, Otedola, in a statement he personally signed, titled “Response to Obaigbena’s smear campaign”, accused the media mogul of diverting the loan he obtained to finance an oil block, to fund his ostentatious lifestyles and the presidential campaign of  Godwin Emefiele, the immediate past governor of the Central Bank of Nigeria, CBN.

According to him, the loan was facilitated through Emefiele without ‘competitive bidding’, adding that rather than repay the loan, Obaigbena  has embarked on media campaign to tarnish his image.

The loan, Otedola claimed, was used for the “acquisition of luxury properties abroad, the operation of a private jet, and an extravagant $68 million spent on jet rentals in just four years,’ according to him, adding that the ‘blackmail’ to stop the bank from recovering the loan will not work.

Following, Otedola’s statement:

“My attention has been drawn to articles published by ThisDay (on Thursday, January 9 and Friday, January 10, 2015), clearly instigated by Mr. Nduka Obaigbena, filled with baseless allegations aimed at smearing my reputation. It is unfortunate that Mr Obaigbena has resorted to such tactics simply because he has been asked to repay his $230 million loan.

“This loan, facilitated with the help of the former Central Bank of Nigeria Governor, Mr Godwin Emefiele, was purportedly for the operation of an oil block which he obtained without competitive bidding.

“However, the funds were diverted for personal use-funding Mr Emefiele’ presidential aspirations,  acquisition of luxury properties abroad, the operation of a private jet, and an extravagant $68 million spent on jet rentals in just four years. Mr Obaigbena’s profligacy is well known, as is his penchant for using his media platforms to blackmail and silence those who hold him accountable.

“As Chairman of First Bank Holdings, my primary responsibility is to protect the interests of the bank’s shareholders and depositors. The actions initiated in the courts are necessary to recover funds that belong to depositors and ensure corporate governance.

“Mr Obaighena’s penchant of 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 outweigh 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 jeopardize 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.

-Otè$”