A Federal High Court sitting in Port Harcourt has dismissed a suit filed by First Bank of Nigeria (FBN) against General Hydrocarbons Limited (GHL), dealing a major blow to the bank’s efforts to halt what it described as a fraudulent attempt to dispose of crude oil aboard the FPSO Tamara Tokoni.
In a ruling delivered by Justice E.A. Obile, the court upheld a preliminary objection filed by GHL and dismissed the case in its entirety on the grounds that it lacked jurisdiction to entertain the matter.
The judge ruled that the dispute was not a maritime claim but rather a debt recovery matter and held that the suit constituted an abuse of court process and a breach of a prior court order.
Court Findings
The court agreed with GHL’s lead counsel, Dr. ‘Biodun Layonu (SAN), who argued that FirstBank’s suit violated the restraining orders earlier issued by Justice Allagoa of the Federal High Court in Lagos on December 12, 2024 (Suit No. FHC/L/CS/1953/2024), which barred the bank from enforcing any receivables arising from the facility agreement entered into by the parties.
- In its ruling, the court noted that FirstBank had, in its own filings, admitted being bound by the earlier Lagos court order but nonetheless attempted to initiate fresh legal proceedings in Port Harcourt in violation of that directive.
- Justice Obile concluded that the suit was a “classic case” of forum shopping and a clear abuse of judicial process.
- Furthermore, the court ruled that the ex parte arrest orders issued on January 9, 2025, which allowed the arrest and restriction of the entire cargo of crude oil on the FPSO Tamara Tokoni, had expired by operation of law, having only a 14-day lifespan unless renewed.
- These orders had also empowered agencies such as the Nigerian Navy, NUPRC, NIMASA, and the Nigerian Ports Authority to assist the Admiralty Marshal in enforcing the arrest.
With those orders deemed to have lapsed, the court set them aside, potentially clearing the way for arbitration proceedings between the parties.
- GHL has filed a claim at the Lagos Court of Arbitration, demanding hundreds of millions of dollars in damages for what it alleges are repeated breaches of obligations by FirstBank.
- However, despite the court’s ruling, FirstBank insists that the crude cargo remains under arrest and that it has taken steps to appeal the judgment.
In a statement, the bank said it has filed a notice of appeal and is also seeking an injunction to restrain GHL from tampering with the crude pending the resolution of the appeal.
“While FirstBank holds the judiciary in high regard, we strongly disagree with the ruling, which we believe represents a miscarriage of justice,” the bank said.
“We remain committed to protecting the interests of our stakeholders and will relentlessly pursue justice against mischievous debtors attempting to manipulate the legal system to avoid their financial responsibilities.”
The case highlights the growing tension between commercial disputes and maritime enforcement actions in Nigeria’s oil and gas sector, particularly as financial institutions seek legal avenues to recover massive debts tied to crude oil transactions.
