A Federal High Court sitting in Port Harcourt has delivered a major blow to First Bank of Nigeria (FBN) by dismissing its suit against General Hydrocarbons Limited (GHL).
Justice E.A. Obile struck out the case, ruling that the court lacked jurisdiction to hear it and describing First Bank’s actions as an “abuse of court process”.
To begin with, Justice E.A. Obile ruled that the court lacked the jurisdiction to hear the case.
As a result, the judge upheld GHL’s preliminary objection.
Led by Senior Advocate of Nigeria, ‘Biodun Layonu, GHL successfully argued that First Bank’s suit violated an earlier order that Justice Allagoa issued on December 12, 2024 (Suit No. FHC/L/CS/1953/2024).
This order had explicitly barred the bank from enforcing receivables arising from their facility agreement.
Failed Attempt To Justify The Suit
Moreover, the court rejected First Bank’s attempt to distinguish the current suit from the previous one.
According to the judge, every agreement between the parties followed a binding Memorandum of Understanding, which, as evidence showed, First Bank repeatedly breached.
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Ex-Parte Orders Set Aside
In addition, the court set aside the ex-parte orders that First Bank obtained on January 9, 2025.
These orders had authorised the seizure of crude oil aboard the FPSO vessel Tamara Tokoni.
However, the court ruled that these orders had automatically lapsed by operation of law.
As a result of this ruling, General Hydrocarbons Limited can now proceed with arbitration against First Bank at the Lagos Court of Arbitration.
There, GHL is seeking hundreds of millions of dollars in damages for multiple breaches of contract.
Ultimately, this decision not only marks a major victory for GHL but also delivers a significant setback for First Bank as the legal battle now shifts to arbitration.
