FirstBank has won the appeal in landmark case against General Hydrocarbons Ltd.
NaijaOnPoint Nigeria reports that First Bank of Nigeria Limited (FirstBank) has recorded a major legal victory at the Court of Appeal in its long-running dispute with General Hydrocarbons Limited (GHL) over the diversion of crude oil proceeds pledged as loan collateral.
The appellate court, in a ruling delivered on Thursday, September 11, 2025, overturned an earlier judgment of the Federal High Court, Port Harcourt, which had dismissed FirstBank’s claims and treated the matter as a simple debt recovery case.
The dispute stemmed from crude oil aboard the FPSO Tamara Tokoni, which GHL had pledged to FirstBank as security for substantial loan facilities. Instead of remitting the proceeds from the sale of the cargo as agreed, GHL allegedly diverted them, prompting the bank to seek legal redress.
On appeal, FirstBank’s legal team, led by Senior Advocates of Nigeria Babajide Koku and Victor Ogude, argued that the case was fundamentally maritime in nature, requiring the preservation of the Res (the crude oil cargo).
The Court of Appeal upheld the bank’s position, setting aside the trial court’s ruling that vacated the arrest order on the vessel. The court further authorised the sale of the crude oil aboard Tamara Tokoni, directing that proceeds be deposited in an interest-bearing escrow account managed by the Chief Registrar of the Court of Appeal. The Registrar was also empowered to take custody of the cargo to prevent dissipation or unauthorised disposal pending the determination of the case at both the trial court and arbitration.
Legal experts say the ruling sets an important precedent in enforcing collateral agreements in high-value commercial transactions.
In a statement, FirstBank described the judgment as a reaffirmation of its commitment to corporate governance, legal compliance, and protecting the interests of its stakeholders.
“This landmark ruling reinforces our confidence in the Nigerian judiciary and underscores the importance of accountability in commercial dealings,” the bank said.
The case now proceeds for further hearing at the Federal High Court and the arbitration tribunal.