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General Hydrocarbons Limited (GHL) accuses First Bank of Nigeria (FBN) of contract breaches over Oil Mining Lease 120 funding, sparking a $1 billion lawsuit. Allegations include contempt of court by FBN Chairman Femi Otedola and operational losses. Shareholders demand leadership changes as the dispute escalates in court.

General Hydrocarbons Limited (GHL) has escalated its legal battle with First Bank of Nigeria (FBN), accusing the financial institution of breaching agreements tied to the development of Oil Mining Lease (OML) 120. The dispute centers on FBN's alleged failure to fulfill its funding obligations, prompting GHL to seek $1 billion in damages.

GHL asserts that the bank delayed crucial financial support, causing substantial project setbacks and operational costs. According to GHL, FBN’s delays resulted in penalties linked to equipment downtime, further compounding the company’s financial burden. These actions, GHL argues, undermine the collaborative agreements established to optimize oil exploration and development.

Adding to the controversy, a Federal High Court in Lagos had previously issued an order restraining FBN from taking any action related to GHL’s assets. However, GHL claims the bank disregarded this directive by freezing $225.8 million of its funds, leading to contempt proceedings against FBN’s Chairman, Femi Otedola, and several directors.

Shareholders within FBN Holdings have also raised concerns, criticizing leadership decisions and calling for an extraordinary general meeting. They argue that governance issues have disrupted the bank’s stability and demand changes in its board composition.

GHL has vowed to pursue all legal avenues to hold FBN accountable for the alleged contractual violations.