The Federal High Court in Port Harcourt, Rivers State, has dismissed a lawsuit filed by First Bank of Nigeria (FBN) against General Hydrocarbons Limited (GHL), ruling that the court lacked jurisdiction to hear the case. Justice E.A. Obile, presiding over the matter, upheld the arguments presented by GHL’s counsel, Dr. ‘Biodun Layonu, SAN, who had raised a preliminary objection questioning the court’s jurisdiction.
The court ruled that First Bank’s suit was an abuse of the legal process and violated an earlier order issued by Justice Allagoa on December 12, 2024, in a separate case (Suit No. FHC/L/CS/1953/2024). This order had prohibited First Bank from taking any action to enforce receivables from the facility agreement between the two parties. The court further noted that the bank’s attempt to differentiate the current case from the previous one was unfounded, as all agreements stemmed from the Memorandum of Understanding (MoU) that First Bank allegedly breached.
By filing the suit, the court concluded that First Bank was attempting to bypass the prior judicial restriction. As a result, the court dismissed the case, describing it as a clear misuse of the judicial process. Furthermore, the ex-parte orders issued on January 9, 2025, including the arrest and attachment of crude oil cargo aboard the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni, were automatically deemed expired and set aside.
This ruling paves the way for General Hydrocarbons Limited to proceed with arbitration at the Lagos Court of Arbitration, where it is seeking hundreds of millions of dollars in damages due to multiple alleged breaches by First Bank.
Reacting to the decision, First Bank expressed its disappointment, calling the ruling a “miscarriage of justice.” The bank reaffirmed its commitment to protecting its interests and intends to pursue further legal actions to recover debts. In the meantime, First Bank has appealed the decision and filed for an injunction against GHL, pending the outcome of the appeal
