The Court of Appeal sitting in Abuja has firmly dismissed an appeal brought by a consortium of leading Nigerian banks against two interlocutory decisions of the High Court of the Federal Capital Territory in a commercial suit filed by Tempo Energy Nigeria Limited.
In a judgment delivered on 25th April 2025, the Court of Appeal sitting in Abuja dismissed the appeal filed by Ecobank Nigeria Limited, First Bank of Nigeria Limited, Guaranty Trust Bank Plc, Fidelity Bank Plc, FBNQuest Trustees Limited, Sterling Bank Plc, Union Bank of Nigeria Plc, and Zenith Bank Plc against Tempo Energy (Nigeria) Ltd, Aiteo Eastern Exp. Coy Ltd & 8 Ors in Appeal No.: CA/ABJ/CV/267/2021. The banks had sought to overturn the High Court’s decision to consolidate their preliminary objection with that filed by Tempo Energy as well as the Court’s decision to adjourn proceedings for ruling following oral arguments on an application to discharge ex parte orders granted on 22nd January 2021.
The Court of Appeal, however, in a unanimous judgment found the appeal to be wholly unmeritorious, characterising it as a “reckless and hopeless abuse of judicial process.” The Court consequently dismissed the appeal and imposed significant costs—₦1 million in favour of Tempo Energy and ₦500,000 in favour of Aiteo.
In his forthright and illuminating lead judgment read by Hon. Justice O.E. Abang JCA, the Court held:
“The appeal was filed in bad faith. Assuming the Appellants did not in an indecent haste rush to this court with the reckless, needless and frivolous appeal, maybe the trial court would have, before now, determined their motion to strike out the suit and decide whether it was proper for the 1st Respondent to file this suit or apply to join in several proceedings in respect of a dispute arising out of a facility agreement to which it is alleged it was a party.”
His Lordship further concluded thus:
“In conclusion, the lone issue formulated by the 1st Respondent is hereby resolved in favour of the 1st and 2nd Respondents against the Appellants. The appeal lacks merit. It is accordingly dismissed as being hopeless and reckless abuse of judicial process.”
In his concurring judgment, Honourable Justice D.U. Okorowo, JCA, also dismissed the appeal and emphasized the abuse inherent in its filing. His Lordship further emphasized the need for parties to maintain the status quo in the following words:
“I agree that the present appeal devoid of any merit is an abuse of process of court. An abusive appeal does not fall outside the doctrine of lis pendens, as parties are bound to maintain the status quo as ordered by the lower court until this court holds otherwise. Steps must not be initiated in the face of pending process to adopt other measures in resolution of the issue related to the subject matter before the court such as tinkering with arbitration process, as that would be visited with the full implications of the doctrine of lis pendens—that any proceeding involving the subject matter during the pendency of litigation may be deemed void, or liable to be set aside, depending on the outcome of the case. Having concurred with the lead judgment, I too hold that the appeal lacks merit and is hereby dismissed. In the circumstances, the case is remitted to the lower Court for accelerated hearing and determination of the already consolidated applications, as the interim orders of the trial court would only abate after the hearing and determination of all those applications which the lower court consolidated.”
It will be recalled that the underlying suit, Suit No. FCT/HC/CV/079/2021, was instituted by Tempo Energy Nigeria Limited against Aiteo and 16 others, including the bank consortium. At the heart of the dispute are issues surrounding a multi-party facility agreement involving significant financial obligations. The High Court, presided over by Honourable Justice S.B. Belgore, had granted ex parte injunctive reliefs and subsequently entertained various preliminary objections filed by the banks and Aiteo, leading to the consolidation directive and adjournment in issue.
Rather than allow the trial court to adjudicate upon the pending applications on their merits, the bank consortium launched an interlocutory appeal, thereby stalling the proceedings for over four years—a delay now explicitly condemned by the appellate court.
Legal and industry observers have hailed the ruling as a clear message against dilatory tactics in commercial litigation and a significant win for Tempo Energy, which has persistently sought judicial determination of its claims despite the formidable line-up of financial institutions opposing it.
With this decisive ruling, the path is now cleared for the High Court to proceed to determine the substantive suit—a long-awaited development which many believe could have significant implications for enforcement of obligations under commercial facility agreements in Nigeria’s energy sector.
The Court of Appeal’s decision affirms the judiciary’s intolerance for procedural abuses and underscores the principle that the appellate process must not be used as a tool to frustrate the administration of justice. It also re-establishes the right of parties like Tempo Energy to have their grievances heard without undue interference or obstruction.
As proceedings resume at the High Court, attention now turns to the merits of the underlying dispute, with renewed public and commercial interest in the outcome. Tempo Energy, buoyed by the appellate court’s vindication, appears well-positioned to press forward with its claims.