Court dismisses FirstBank’s suit against General Hydrocarbons, declares case an abuse of process

A Federal High Court sitting in Port Harcourt has dismissed a suit filed by First Bank of Nigeria (FBN) against General Hydrocarbons Limited (GHL), marking a significant setback for the bank’s efforts to block what it alleged was a fraudulent attempt to dispose of crude oil aboard the FPSO Tamara Tokoni.

In a ruling delivered by Justice E.A. Obile, the court upheld a preliminary objection filed by GHL, ruling that it lacked jurisdiction to hear the case.

The judge determined that the dispute was not a maritime claim, as argued by FirstBank, but rather a debt recovery matter, making it an abuse of court process. The suit was also deemed to be in violation of an existing court order.

Justice Obile agreed with GHL’s lead counsel, Dr. ‘Biodun Layonu (SAN), who contended that FirstBank’s legal action directly contradicted an earlier restraining order issued by Justice Allagoa of the Federal High Court in Lagos on December 12, 2024 (Suit No. FHC/L/CS/1953/2024).

READ ALSO: Court rules FirstBank-GHL dispute as debt recovery case, not maritime claim

The Lagos order had barred FirstBank from enforcing any receivables arising from the disputed facility agreement between the parties.

The judge further noted that FirstBank had already admitted—in its own filings—that it was bound by the earlier Lagos court ruling.

However, despite this admission, the bank attempted to initiate fresh legal proceedings in Port Harcourt, a move the court described as “a classic case of forum shopping and abuse of judicial process.”

Another key aspect of the ruling was the court’s decision to set aside the ex parte arrest orders issued on January 9, 2025, which had led to the seizure and restriction of the crude oil cargo aboard FPSO Tamara Tokoni.

These arrest orders, which were initially granted for a 14-day period, had allowed enforcement agencies such as the Nigerian Navy, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigerian Ports Authority (NPA) to assist in detaining the crude.

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However, since the orders had expired by law, and were not renewed, the court ruled that they were no longer valid, effectively paving the way for arbitration between the disputing parties.

Following the ruling, General Hydrocarbons Limited has taken legal action at the Lagos Court of Arbitration, seeking hundreds of millions of dollars in damages over what it describes as repeated breaches of contractual obligations by FirstBank.

Meanwhile, despite the unfavorable judgment, FirstBank has vowed to fight on. The bank stated that it had already filed a notice of appeal and was also seeking an injunction to prevent GHL from tampering with the crude oil cargo until the appeal is resolved.

“While FirstBank holds the judiciary in high regard, we strongly disagree with the ruling, which we believe represents a miscarriage of justice,” the bank said in an official statement.

“We remain committed to protecting the interests of our stakeholders and will relentlessly pursue justice against mischievous debtors attempting to manipulate the legal system to avoid their financial responsibilities.”

This case highlights the increasing tension between commercial disputes and maritime enforcement actions in Nigeria’s oil and gas sector.

As financial institutions continue seeking legal avenues to recover massive debts tied to crude oil transactions, the ruling could set a legal precedent for how courts handle such matters going forward.