Concerning The Dispute Between FBN Holdings And GHL

From: Enam Obiosio

Date: January 17, 2025

To: All Parties Concerned

Subject: Ensuring a Peaceful Resolution to Safeguard Stakeholder Interests and Market Stability

The ongoing dispute between FBN Holdings Plc and General Hydrocarbons Limited (GHL) over the alleged $225 million loan has raised significant concerns within the financial and investment communities.

This conflict, if left unresolved, risks not only financial losses but also reputational damage to both entities and the stability of the Nigerian financial market.

I urge all parties to adopt a measured, transparent, and collaborative approach to resolve the matter effectively.

Below are my recommendations to ensure a peaceful resolution:

1. Commitment to Dialogue and Mediation

Both parties should prioritise dialogue over public confrontations. Engaging an independent mediator or arbitration panel, preferably through the Nigerian Financial Market Mediation Panel or a similar neutral body, could provide an impartial platform for resolving the dispute.

2. Public Statements and Media Engagement

It is critical to avoid inflammatory or accusatory language in public communications, as this may aggravate tensions and harm stakeholder confidence. Both FBN Holdings and GHL should release joint statements emphasising their commitment to a fair resolution. These statements should outline ongoing efforts and reassure stakeholders of the integrity of their operations.

3. Transparency and Disclosure

To mitigate speculation and misinformation, both parties must transparently disclose the facts of their agreements and legal proceedings to the public. These disclosures should include:

• Details of the Subrogation Agreement and terms of the loan.
• Status and impact of court judgments on both entities.
• Measures being implemented to protect shareholder and depositor interests.

4. Investor Assurance and Market Stability

FBN Holdings, as a listed entity, must proactively engage with investors and market operators to address concerns about the impact of the dispute on its financial health. Regular updates and investor briefings are necessary to maintain confidence and prevent further stock price erosion.

5. Mutual Focus on Long-Term Interests

Both parties should recognise the broader implications of their actions. Protecting the financial ecosystem, shareholder value, and reputational integrity must outweigh personal or organisational disputes. Collaborative problem-solving, rather than adversarial posturing, will serve their long-term interests.

6. Avoiding Escalation through Legal and Media Channels

While legal recourse is a right, over-reliance on litigation or media campaigns risks polarising public opinion and complicating resolution efforts. I recommend minimising reliance on adversarial tactics and focusing on mutually beneficial outcomes.

Final Appeal

As leaders of major entities in Nigeria, the resolution of this dispute should serve as a model for corporate governance and conflict resolution. A peaceful resolution will reinforce confidence in the Nigerian business environment and highlight the commitment of both parties to ethical and responsible business practices.

Should you require further facilitation of dialogue, I remain available to collaborate and support this process.

Sincerely,

Signed

Enam Obiosio

Managing Director, Astudity Limited

 

I am a public relations practitioner with strong bias for investor relations and infrastructure & project financing reviews and analysis.