Honeywell Flour Mills has questioned a statement by Godwin Emefiele, Governor of Central Bank of Nigeria (CBN) that it defaulted on its loan from First Bank of Nigeria.

CBN on Thursday had instructed Honeywell to repay within 48 hours its loan obligations to First Bank.

“The insiders who took loans in the bank, with controlling influence on the board of directors, failed to adhere to the terms for the restructuring of their credit facilities which contributed to the poor financial state of the bank,” CBN said in a statement announcing the sack of board members of First bank and FBN holdings.

The insider is believed to be Oba Otudeko, one of the sacked board members and owner of Honeywell Flour Mills.

The apex bank also threatened, it will take appropriate regulatory measures to ensure it is paid.

However, in a statement on Friday signed by its company secretary Yewande Giwa, the food and the agro-allied company said the outstanding loan with the bank is based on agreed terms.

With reference to the credit facility with First Bank of Nigeria (FBN); over many decades, the company has had a long standing, mutually beneficial credit relationship and continues to fulfill all its obligations to the Bank, and all its facilities are fully performing,” the statement reads.

The statement which was submitted to the Nigerian Exchange Limited, also noted that the company has adequate security to cover its loan exposure and has not defaulted or shown signs of distress.”

“The terms of the loan with FBN have been fulfilled in line with industry standards and in accordance with agreed terms throughout its course and the Company expects to continue to do so.

We remain committed to complying with regulations governing our industry and our obligations to First Bank and our various financial counterparts”, it said.