Court of Appeal Rules in Favour of FirstBank in Dispute with General Hydrocarbons

First Bank of Nigeria Limited (FirstBank) has secured a major legal victory at the Court of Appeal in its case against General Hydrocarbons Limited (GHL), represented by its legal team led by Babajide Koku, SAN, and Victor Ogude, SAN.

In a ruling delivered on Thursday, September 11, 2025, the Court of Appeal overturned an earlier decision of the Federal High Court, Port Harcourt (Obile J.), which had dismissed FirstBank’s claims over the fraudulent diversion of proceeds from the sale of crude oil cargo pledged as collateral for loan facilities.

The case centred on crude oil aboard the FPSO Tamara Tokoni, pledged by GHL to FirstBank as security. Contrary to the agreement, GHL allegedly diverted the proceeds from the sale, prompting the bank to seek redress. While the trial court treated the matter as a mere debt recovery, the Court of Appeal affirmed its maritime nature, stressing the need to preserve the Res (the crude oil cargo) as the core issue in dispute.

The appellate court:

• Allowed FirstBank’s appeal and set aside the Federal High Court ruling.
• Restored the order for the arrest and sale of the crude oil cargo aboard FPSO Tamara Tokoni.
• Directed that the proceeds be deposited into an interest-yielding escrow account managed by the Chief Registrar of the Court of Appeal.
• Appointed the Chief Registrar to take possession of the cargo and prevent its dissipation or unauthorised disposition.

The ruling marks a significant milestone for FirstBank, reinforcing its commitment to safeguarding financial transactions, upholding collateral agreements, and protecting stakeholder interests. The judgment also sets an important precedent for accountability in high-value commercial and maritime disputes.