FBN Holdings Plc experienced a 5.63% decline in stock price on the Nigerian Exchange Limited (NGX) on Thursday, as investor sentiment soured due to a $225 million loan dispute involving its subsidiary, First Bank, and General Hydrocarbons Limited (GHL).
The stock opened trading at ₦30.20 per share but fell by ₦1.70 to close at ₦28.50 per share. Market analysts attribute the dip to growing concerns over the implications of the legal tussle on the bank's financial stability.
According to stock traders, investors are adopting caution regarding the FBN Holding shares, awaiting the final outcome of the dispute, noting that this may mark the beginning of a continuous slide in the shares.
Contrary to claims of alleged debt to First Bank of Nigeria (FBN) Plc, the management of the GHL, which cited several agreements between it and FBN, explained that there was a subsisting moratorium pending the commercial oil production.
Also, GHL said there was a Federal High Court judgment in its favor, adding further that FBN’s claim of indebtedness, especially in the media space was “misleading and malicious”.
Referencing a January 10/11 publication in the media, including social media wherein a “Federal High Court in Lagos was reported to have frozen the accounts of GHL in all financial institutions in Nigeria and restrained the banks from releasing funds to the company owned by Mr. Nduka Obaigbena, the Chairman of THISDAY/ARISE Media Group “Over alleged outstanding indebtedness amounting to $225,802,379.79m to First Bank,” GHL’s Director of Strategy and Operations, Abdelmuizz Bello, stressed that the claims of FBN were untrue and misleading.