Court Slams Door on First Bank Again as GHL Secures Third Legal Victory
Detailed Breakdown of the News:
A Federal High Court in Port Harcourt has once again ruled in favour of General Hydrocarbon Limited (GHL), dismissing First Bank of Nigeria Limited’s latest legal challenge. The court threw out First Bank’s request for a stay of execution against GHL’s third consecutive legal victory in the long-running commercial dispute.
Background of the Dispute:
• First Bank had earlier obtained a court order (January 9, 2025) to arrest and detain a cargo of crude oil onboard the FPSO Tamara Tokoni, a vessel operated by GHL.
• The court’s order was secured via an ex parte application and was meant to protect First Bank’s claims pending a $19.75 million guarantee by GHL.
• As a result, the Nigerian Navy detained the vessel on the high sea.
GHL’s Response and Court Ruling:
• GHL filed an application on February 18, 2025, requesting the court to vacate the arrest order on the grounds that the ex parte order had lapsed after 14 days, as per the Federal High Court Civil Procedure Rules (2019).
• Justice E.A. Obile agreed, ruling that the order had expired and thus should be set aside.
• The court formally dismissed the arrest and detention order, declaring that First Bank’s overall suit lacked merit.
Dismissal of Additional Motions:
• On April 29, 2025, the court also granted GHL’s request to withdraw three motions filed by First Bank on March 25, March 28, and April 2.
• These motions were also dismissed accordingly, with instructions for proper service on parties involved.
Wider Legal Context:
• First Bank had earlier obtained a Mareva injunction from a Lagos court, freezing funds in all Nigerian banks belonging to GHL and its directors—Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena.
• The bank accused GHL of defaulting on credit facilities for oil asset development.
• GHL denied the allegations, insisting it met its obligations and that First Bank had failed to honor funding commitments for OML 120.
• Arbitration proceedings are already underway, with GHL seeking compensation for alleged breaches by First Bank.
• Notably, First Bank has repeatedly attempted to halt the arbitration through the courts—but has consistently lost.
Implications:
This latest ruling marks GHL’s third straight courtroom win against First Bank and reaffirms judicial resistance against using court processes to derail arbitration. The decision is expected to bolster confidence in commercial dispute resolution and project enforcement of contractual obligations in Nigeria’s oil and gas sector.
Detailed Breakdown of the News:
A Federal High Court in Port Harcourt has once again ruled in favour of General Hydrocarbon Limited (GHL), dismissing First Bank of Nigeria Limited’s latest legal challenge. The court threw out First Bank’s request for a stay of execution against GHL’s third consecutive legal victory in the long-running commercial dispute.
Background of the Dispute:
• First Bank had earlier obtained a court order (January 9, 2025) to arrest and detain a cargo of crude oil onboard the FPSO Tamara Tokoni, a vessel operated by GHL.
• The court’s order was secured via an ex parte application and was meant to protect First Bank’s claims pending a $19.75 million guarantee by GHL.
• As a result, the Nigerian Navy detained the vessel on the high sea.
GHL’s Response and Court Ruling:
• GHL filed an application on February 18, 2025, requesting the court to vacate the arrest order on the grounds that the ex parte order had lapsed after 14 days, as per the Federal High Court Civil Procedure Rules (2019).
• Justice E.A. Obile agreed, ruling that the order had expired and thus should be set aside.
• The court formally dismissed the arrest and detention order, declaring that First Bank’s overall suit lacked merit.
Dismissal of Additional Motions:
• On April 29, 2025, the court also granted GHL’s request to withdraw three motions filed by First Bank on March 25, March 28, and April 2.
• These motions were also dismissed accordingly, with instructions for proper service on parties involved.
Wider Legal Context:
• First Bank had earlier obtained a Mareva injunction from a Lagos court, freezing funds in all Nigerian banks belonging to GHL and its directors—Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena.
• The bank accused GHL of defaulting on credit facilities for oil asset development.
• GHL denied the allegations, insisting it met its obligations and that First Bank had failed to honor funding commitments for OML 120.
• Arbitration proceedings are already underway, with GHL seeking compensation for alleged breaches by First Bank.
• Notably, First Bank has repeatedly attempted to halt the arbitration through the courts—but has consistently lost.
Implications:
This latest ruling marks GHL’s third straight courtroom win against First Bank and reaffirms judicial resistance against using court processes to derail arbitration. The decision is expected to bolster confidence in commercial dispute resolution and project enforcement of contractual obligations in Nigeria’s oil and gas sector.