Court dismisses FirstBank’s suit against GHL over crude cargo, but bank insists cargo arrest remains in force 

In a ruling delivered by Justice E.A. Obile, the court upheld a preliminary objection filed by GHL and dismissed the case in its entirety on the grounds that it lacked jurisdiction to entertain the matter.

The judge ruled that the dispute was not a maritime claim but rather a debt recovery matter and held that the suit constituted an abuse of court process and a breach of a prior court order.

The court agreed with GHL’s lead counsel, Dr. ‘Biodun Layonu (SAN), who argued that FirstBank’s suit violated the restraining orders earlier issued by Justice Allagoa of the Federal High Court in Lagos on December 12, 2024 (Suit No. FHC/L/CS/1953/2024), which barred the bank from enforcing any receivables arising from the facility agreement entered into by the parties.

With those orders deemed to have lapsed, the court set them aside, potentially clearing the way for arbitration proceedings between the parties.

In a statement, the bank said it has filed a notice of appeal and is also seeking an injunction to restrain GHL from tampering with the crude pending the resolution of the appeal.

“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.

“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.” 

The case highlights the growing tension between commercial disputes and maritime enforcement actions in Nigeria’s oil and gas sector, particularly as financial institutions seek legal avenues to recover massive debts tied to crude oil transactions.