First Bank of Nigeria’s appeal against General Hydrocarbons Limited (GHL), a business associated with media entrepreneur Nduka Obiagbena, has been upheld by the Court of Appeal.
As a result, the appellate court has overturned a previous ruling in favor of GHL from a Federal High Court in Port Harcourt.
The Court of Appeal’s decision reversed the March 2025 opinion of Justice E.A. Obile, which had revoked enforcement orders that the bank had acquired in January.
The decision defines the dispute’s interim status, but it leaves the substantive issues up for the trial court and possible arbitration.
Pending the hearing and resolution of a suit before the trial court and/or court of arbitration in the case between the First Bank of Nigeria and General Hydrocarbons Limited and others, the Appeal Court has designated the Chief Registrar of the Court of Appeal, in coordination with the Admiralty Marshal, to assume control, possession, and safeguard any cargo of crude oil on board FPSO Tamara Tokoni against expropriation, waste, dissipation, and/or fraudulent disposition by any of the parties (FBN & GHL).
While 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.
In addition, 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.
Crude oil owned by GHL and Conoil/NNPCL is in the FPSO.
Legal GHL was accused by First Bank of owing it $225.8 million.
GHL, however, vehemently disputes the allegation, claiming that FBN seriously violated the 2021 Subrogation Agreement and that no money is owed.
GHL claimed in the appeal that FBN had abused an ex parte freezing order by selectively releasing a portion of the crude in the FPSO to Conoil and NNPC. However, the Court of Appeal has now halted this, granting the Chief Registrar, with assistance from the Admiralty Marshall of the Court of Appeal, possession and control of all the crude in the FPSO.
The cargo had been offered as collateral for GHL’s borrowing facilities.
Costs had to be borne by the parties themselves.
