Honeywell Group Refutes Central Bank's Claims, Says Loans Are Properly Serviced

Honeywell Group has come out to refute claims by the central bank saying its loans from the First Bank of Nigeria were unregulated. The company says its loan facilities from the bank are within regulatory prescriptions and are performing according to the bank's standards.

Last week, the Central Bank of Nigeria, sacked the boards of directors of First Bank Nigeria, and FBN Holdings, including Honeywell Group Oba Otudeko, for allegedly using their positions to invoke special favors for Honeywell Group - this includes not ensuring a loan of N75 million was properly regulated. 

But in a statement yesterday the company said: “We have serviced all our credit facilities in line with the terms agreed with First Bank and at no point have any of these facilities been non-performing.

“In accordance with agreed terms, our facilities are adequately secured with First Bank, with collaterals in place at over 170% of Forced Sales Value and 230% at Open Market Value.

“In addition to the above, First Bank, on the directive of CBN, requested additional security in the form of FBN Holdings Plc shares held by the Chairman of Honeywell Group, Dr. Oba Otudeko, citing a 2001 circular. This was duly provided through an authorization to place a lien on the shares.”

On the subsequent performance of the loans, the company stated: “Honeywell Group has continued to meet all its obligations on its facilities with the Bank according to agreed terms and has reduced its exposure by nearly 30% in 2.5 years. The facilities were charged at market rates and the Bank continues to earn significant interest therefrom.”