The stock price of FBN Holdings Plc fell by 5.63% on the Nigerian Exchange Limited (NGX), closing at ₦28.50 per share, down from ₦30.20. The decline reflects investor caution as the financial institution faces a dispute involving First Bank of Nigeria (FBN), its mainstay, and General Hydrocarbons Limited (GHL) over a $225 million loan. Market observers warn this controversy could lead to further declines in the stock’s value.
The dispute centers on a Subrogation Agreement signed in 2021, where FBN agreed to fund GHL’s oil production in exchange for a 50-50 profit-sharing arrangement to pay down FBN’s non-performing loans. GHL contends the agreement has been misrepresented in recent media reports, stating that a Federal High Court judgment favored GHL and granted a moratorium until commercial oil production begins. GHL’s management has accused FBN of spreading misleading claims regarding its indebtedness.
GHL’s Director of Strategy, Abdelmuizz Bello, emphasized that the oil firm had no connection to FBN’s previous non-performing loans linked to Atlantic Energy. Instead, the agreements with GHL helped FBN recover financially, turning potential loan losses into profits in 2021. The controversy has sparked unease among investors, who are awaiting the dispute’s resolution to determine its impact on FBN Holdings’ financial health.
