First Bank Fights Legal Order, Maintains Hold on General Hydrocarbons’ Oil Shipment
First Bank of Nigeria is challenging a court ruling that dismissed its lawsuit against energy firm General Hydrocarbons. The bank has appealed the Federal High Court Port Harcourt’s decision, arguing that the ruling was unjust and that its claims go beyond simple debt recovery.
Dispute Over Court’s Ruling
In a statement, First Bank expressed disappointment over the court’s view that the case was not a maritime claim but a debt recovery issue. The bank also disagreed with the court’s stance that the arrest order on the FPSO Tamara Tokoni’s crude oil cargo expired after 14 days. Due to these concerns, First Bank has filed an appeal against the decision.
Despite the court’s ruling, the bank insists that the crude oil cargo remains under arrest. It stated that while it respects the judiciary, the decision is a setback to justice. The bank also reaffirmed its commitment to protecting the interests of its stakeholders and ensuring that debtors fulfill their financial obligations.
Background of the Case
This legal battle began when First Bank and FBN Quest Trustees approached the Federal High Court in Lagos on December 27, 2024. They sought a Mareva injunction to freeze assets worth $225.8 million, which they claimed was General Hydrocarbons’ outstanding debt as of September 30, 2024.
The court granted the request, restricting all commercial banks in Nigeria from releasing General Hydrocarbons’ funds. The order also extended to the company’s chairperson, Nduka Obaigbena, and other key figures linked to the firm.
However, General Hydrocarbons contested the ruling, arguing that First Bank obtained the order through misrepresentation and withheld important details. In January, a Lagos court overturned the injunction, citing a conflict with an existing ruling from another court.
Recent Developments
Undeterred, First Bank continued its legal fight. On January 9, 2025, the Federal High Court in Port Harcourt granted new orders in its favor. The court approved the arrest of the crude oil cargo aboard the FPSO Tamara Tokoni and directed Nigerian authorities, including the Navy and the Ports Authority, to assist in enforcing the order.
But on Tuesday, the court reversed these orders. In response, First Bank immediately filed an appeal, stating that it would pursue all legal avenues to ensure accountability from debtors.
