The Court of Appeal has upheld the arguments of FirstBank’s legal team that proceeds from the sale of crude oil cargo aboard the FPSO Tamara Takoni, which General Hydrocarbons Limited (GHL) pledged as a security for a loan facility granted by the Bank, had been improperly diverted.
This latest development is coming on the heels of an appeal filed by First Bank of Nigeria, setting aside an earlier decision of the Federal High Court in Port Harcourt in its case against GHL, a company linked to media mogul, Nduka Obiagbena.
Sources with knowledge of the matter said the appellate court upheld arguments advanced by the bank’s legal team, led by Babajide Koku (SAN) and Victor Ogude (SAN), that the crude oil was improperly diverted.
In its judgment, the Court of Appeal overturned Justice E.A. Obile’s ruling of March 2025, which had vacated enforcement orders obtained by the bank in January. The court further directed the Chief Registrar of the Court of Appeal, in conjunction with the Admiralty Marshal, to assume control of the crude cargo on the vessel to prevent dissipation or disposal pending resolution of the substantive dispute.
The court also ordered that once the storage tanks on board the FPSO are full, the crude oil should be sold and the proceeds paid into an interest-bearing escrow account managed by the Chief Registrar. The funds will remain under the custody of the court until the matter is determined either at trial or in arbitration.
The parties were directed to bear their own costs.
The ruling clarifies that this is an interim position and not a resolution of the substantive issues, which remain before the trial court and potential arbitration.
