Nigerian President Bola Ahmed Tinubu arrived in Abu Dhabi on Sunday and promptly met with Femi Otedola, the chairman of FBN Holdings Plc.
Upon his arrival in the United Arab Emirates, Tinubu was received by Sheikh Shakhboot Nahyan Al Nahyan, Minister of State in the Ministry of Foreign Affairs.
The details of Tinubu’s meeting with the billionaire businessman have yet to be disclosed.
FBN Holdings has been embroiled in a legal dispute with General Hydrocarbons Limited (GHL) following a failed loan transaction.
According to a Nairametrics report, GHL’s request for a fresh $53 million loan and FBN Holdings’ subsequent denial sparked the legal battle between the two companies.
Possible Cause Of The Dispute
The conflict originated from an agreement between FBN Holdings and GHL during the tenure of Oba Otudeko, the former chairman of FBN Holdings Plc.
A leaked letter addressed to the governor of the Central Bank of Nigeria, Yemi Cardoso, revealed that in 2020, GHL partnered with FBN to develop OML 120 after FBN faced financial exposure from non-performing loans linked to Atlantic Energy.
The letter further disclosed that the partnership aimed to ‘revive’ FBN’s books, with profits from OML 120 intended to offset the non-performing loans.
However, GHL claims that FBN failed to fulfil its obligations under the Memorandum of Understanding (MOU) and the Outstanding Exposure Tripartite Deed, leading to GHL’s loss of the Blackford Dolphin drill ship. GHL is currently facing claims exceeding $100 million in arbitration.
It remains uncertain whether Otedola had discussed the dispute with President Tinubu in Abu Dhabi, as stakeholders hope for a peaceful resolution.
