First Bank floors GHL as court upholds appeal against oil cargo sale

The Court of Appeal has overturned a High Court ruling in the case between First Bank of Nigeria and General Hydrocarbons Limited (GHL) over the alleged diversion of proceeds from the sale of an oil cargo pledged as loan security.

The High Court had earlier ruled that the dispute was a simple debt recovery matter rather than a maritime claim, a decision First Bank challenged on appeal.

In a ruling on Thursday, September 11, 2025, the appellate court set aside the High Court’s judgement, authorising the sale of the crude oil cargo aboard FPSO Tamara Tokoni.

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Proceeds from the sale are to be paid into an interest-yielding escrow account in the name of the Chief Registrar of the Court of Appeal, pending the determination of the matter at both the trial court and the court of arbitration.

The court emphasised that its decision was aimed at preserving the res – the subject matter of the dispute – until the case is fully resolved.

It further restored the earlier order for the arrest of the second respondent and directed the Chief Registrar to take possession of the cargo and ensure its protection against dissipation or unauthorised disposition.

The Star