Court of Appeal Judgment Rules in favour of First Bank of Nigeria Limited (FirstBank) against General Hydrocarbons Limited (GHL).
Court of Appeal on Thursday, 11th day of September, 2025, overturned judgment at the Federal High Court, Port Harcourt, earlier dismissing claims by the FirstBank on crude oil diversion. Babajide Koku SAN and Victor Ogude SAN prosecuted in the case for the FirstBank.
The dispute concerned crude oil on the FPSO Tamara Tokoni, which was collateralized by GHL in security for loan facilities. The lender alleged that GHL misrepresented gains from the sale of cargo contrary to the contract, thereby occasioning the court action.
The Federal High Court initially considered the case a debt case and quashed an arrest warrant against the second respondent. The Court of Appeal held that the action was characteristically maritime and highlighted the crude oil cargo as the final object of the dispute.
The court allowed FirstBank’s appeal, reinstated the arrest order, and authorised the sale of the crude oil aboard FPSO Tamara Tokoni. It ordered that proceeds be deposited in an interest-yielding escrow account under the custody of the Chief Registrar of the Court of Appeal. The Registrar was directed to take possession of the cargo and protect it from dissipation.
The judgment is also considered a great boost to FirstBank’s push for collateral enforcement. It also highlights the value placed on accountability and compliance for high-value financial and commercial transactions, according to okay.ng reports.
