In the Early News of today, First Bank of Nigeria Limited (FirstBank) has secured a decisive legal victory, winning its appeal in a landmark case against General Hydrocarbons Limited (GHL). In its judgment delivered on Thursday, 11 September 2025, the Court of Appeal set aside the earlier ruling of the Federal High Court, Port Harcourt, which had dismissed FirstBank’s claims concerning the fraudulent diversion of proceeds from crude oil cargo pledged as collateral for loan facilities.
The dispute arose from crude oil aboard the FPSO Tamara Tokoni, pledged by GHL as security for substantial credit facilities. Contrary to the terms of this pledge, GHL diverted the proceeds from the sale of the cargo, prompting FirstBank to seek redress. While the trial court had classified the matter as a simple debt recovery, the Court of Appeal affirmed the maritime nature of the claim, stressing the preservation of the Res, the crude oil cargo, as the central issue in contention.
In its ruling, the appellate court allowed FirstBank’s appeal, reinstated the arrest of the second respondent, and authorised the sale of the crude oil cargo. It further directed that the proceeds be deposited in an interest-bearing escrow account under the custody of the Chief Registrar of the Court of Appeal, who was also mandated to take possession of the cargo and ensure its protection against dissipation or unauthorised transfer, pending final determination in the trial court and arbitration.
This outcome is more than a legal victory. It reinforces FirstBank’s reputation as a resilient financial institution anchored on transparency, accountability, and sound corporate governance. Commenting on the ruling, the Managing Director/Chief Executive Officer of FirstBank stated: “This judgment demonstrates the strength of our governance framework and our unwavering commitment to protect stakeholder value. It sets a clear precedent for accountability in commercial transactions and reflects our dedication to supporting Nigeria’s financial stability and long-term economic growth.”
