A tribunal has dismissed the $718 million claim filed by General Hydrocarbons Limited (GHL) against First Bank of Nigeria Limited (FBN), ruling entirely in favour of the bank.
The final award, issued on Monday, October 28, 2025, by Justice Kumai Bayang Akaahs, also ordered GHL to pay FBN’s arbitration and legal costs within the next 30 days.
In September, the Court of Appeal set aside a High Court ruling over an alleged fraudulent diversion of proceeds of sale from an oil cargo which it said GHL had pledged as security for a loan.
The dispute stemmed from a Subrogation Agreement dated May 29, 2021, under which GHL agreed to repay an outstanding debt of $718 million, while First Bank was to provide additional financing for the development of the OML 120 oil field.
GHL later accused the bank of failing to provide the required funding, sabotaging alternative financing efforts, and causing financial losses.
In its defence, First Bank maintained that its financing commitment was conditional, not absolute, and that it acted within standard banking and regulatory practices.
The bank further argued that it had made several financing offers to GHL amounting to $185 million.
After reviewing the submissions, the tribunal held that the lender did not breach any terms of the agreement. It found that the bank’s financing obligation was conditional and subject to review and approval procedures.
The introduction of an Independent Asset Manager as part of the financing process was lawful and consistent with the agreement.
It also ruled that allegations that the financial institution frustrated GHL’s alternative financing efforts were without merit.
As a result, all the reliefs sought by GHL, including claims for damages, contractor fees, and termination of the Subrogation Agreement, were dismissed by the tribunal.
The tribunal further ordered GHL to pay $112,100 and N111.25 million to First Bank as reimbursement for legal and arbitration expenses, with interest to accrue if payment is delayed beyond 30 days.
Legal representation in the matter included Mr Paul Usoro (SAN) and Mr Abiodun Layonu (SAN) for GHL, while First Bank was represented by Mr Gbolahan Elias (SAN), Mr Babajide Koku (SAN), and Mr Victor Ogude (SAN).