The Court of Appeal has overturned a ruling of the Federal High Court in Port Harcourt, granting relief to First Bank of Nigeria in its long-running dispute with General Hydrocarbons Limited (GHL), a company linked to media entrepreneur Nduka Obiagbena.
Sources familiar with the case told Nairametrics that the appellate court upheld arguments advanced by the bank’s legal team, led by Babajide Koku (SAN) and Victor Ogude (SAN), that proceeds from the sale of crude oil cargo aboard the FPSO Tamara Tokoni had been improperly diverted. The cargo had been pledged as security for loan facilities obtained by GHL.
Appeal Court Overturns High Court Ruling
In its decision, the Court of Appeal set aside Justice E.A. Obile’s March 2025 ruling, which had earlier vacated enforcement orders secured by First Bank in January.
The appellate court directed the Chief Registrar of the Court of Appeal, working with the Admiralty Marshal, to take control of the crude cargo on the vessel to prevent any dissipation or unauthorized disposal while the substantive dispute remains unresolved.
Escrow Account to Hold Proceeds
The court further ordered that once the FPSO’s storage tanks are full, the crude oil should be sold, with the proceeds deposited in an interest-bearing escrow account managed by the Chief Registrar. The funds are to remain under the custody of the court until the matter is finally decided—either at trial or through arbitration.
The court also ruled that each party should bear its own costs.
Case Still Ongoing
While the ruling provides interim clarity on the handling of the crude cargo, it does not resolve the core dispute between First Bank and GHL. The substantive issues will continue before the trial court and may also proceed to arbitration.
This is a developing story, and further updates are expected in the coming days.
