Appeal Court Sides With FirstBank in Legal Battle With GHL

First Bank of Nigeria filed an appeal against General Hydrocarbons Limited (GHL), a business associated with media entrepreneur Nduka Obiagbena, and the Court of Appeal determined that the petition had validity.

As a result, an earlier order in favor of GHL issued by a Federal High Court in Port Harcourt has been overturned by the higher court.

The Court of Appeal reversed the March 2025 decision of Justice E.A. Obile, which had revoked enforcement orders sought by the bank in January.

The decision makes the dispute’s interim position clear, but it doesn’t address the substantive problems that still need to be decided by the trial court or possibly arbitrated.

The Chief Registrar of the Court of Appeal, working with the Admiralty Marshal, has been appointed by the Appeal Court to guard any crude oil cargo on board the FPSO Tamara Tokoni from expropriation, waste, dissipation, and/or fraudulent disposition by any of the parties (FBN & GHL) while a lawsuit between the First Bank of Nigeria and General Hydrocarbons Limited and others is being heard and decided by the trial court and/or court of arbitration.

In granting First Bank’s appeal, a three-member panel presided over by Justice Polycap Tema Kwahar stated that the case’s interest required that the res be maintained until the High Court and an arbitration panel determined the matter.

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Additionally, the court ordered that the crude oil cargo on board FPSO Tamara Tokoni be sold once the storage tanks on board FSPO Tamara Tokoni were full. The proceeds of each sale were to be deposited into a single interest-bearing escrow account in the name of the Chief Registrar of the Court of Appeal while the suit was being heard in the trial court or the arbitration court.

The crude oil in the FPSO is owned by GHL and Conoil/NNPCL.

According to First Bank, legitimate GHL owes it $225.8 million.

GHL, on the other hand, vehemently disputes the allegation, claiming that FBN severed the 2021 Subrogation Agreement and that no money is owed.

When FBN selectively released some of the crude in the FPSO to Conoil and NNPC, GHL claimed in the appeal that it was abusing an ex parte freezing order. However, the Court of Appeal has now halted this, giving the Chief Registrar, with the help of the Admiralty Marshall of the Court of Appeal, full possession and control of all the crude in the FPSO.

When GHL was given lending facilities, the shipment was offered as security.

Each party was instructed to pay for their own expenses.