First Bank’s Attempt to Get Stay of Execution against GHL’s Third Victory Dismissed

Alex Enumah in Abuja

Move by First Bank of Nigeria (FBN) Limited challenging the victory of General Hydrocarbon Limited (GHL), has failed, following the dismissal of its suit by a Federal High Court in Port Harcourt.

Justice E. A. Obile in a judgment dismissed the suit for lacking in merit, after vacating his earlier orders for the arrest and detention of the crude oil cargo on board the Floating Production Storage and Offloading (FPSO) Vessel, Tamara Tokoni, belonging to General Hydrocarbons Ltd (GHL).

Recall that the court had on January 9, ordered the arrest and detention of the product on FPSO vessel following an exparte application by FBN.

Based on the orders of the court the vessel was arrested by the Navy while on the high sea.

According to the ruling, the order was made “pending the provision of a satisfactory guarantee from a first class Nigerian bank in the sum of $19,752,304.84 plus interest and costs by the said defendants to secure the plaintiff’s claim herein, until this Honourable Court otherwise orders.”

The defendants are GHL, the cargo of crude oil on board FPSO Tamara Tokoni, its owners/operators and the master of the vessel.

However, the defendants in an application filed on February 18, had asked the court to vacate the arrest and detention order, on the grounds that it has elapsed by operation of law pursuant to Order _ 26 Rule 10 of the Federal High Court (Civil Procedure) Rules 2019, having not been heard within fourteen (14) days of filing the Applicants’ application.

After listening to arguments for and against the motion to vacate the January 9 order, the court held that the application succeeded and subsequently granted the reliefs sought.

“That order is made setting aside and vacating the Order of this Honourable Court granted on January 9, 2025.

“That order is made setting aside and vacating the warrant of arrest and detention ‘order granted by this Honourable Court against the Defendants on January 9”, the court held.

Justice Obile further stated that he came to the inevitable conclusion that “the Plaintiff’s suit is lacking in merits and is hereby dismissed”.

A Certified True Copy (CTC) of the court’s ruling issued by a Registrar of the court, Chukwuka Ngozi, dated March 27 and sighted by our correspondent Wednesday night, however showed that the judge made no order as to cost.

Meanwhile, the court in another ruling delivered on April 29, dismissed three motions on notice following application for their withdrawal and ordered service of same on the Deputy Chief Registrar/Admiralty Marshall for service on parties who apply for them.

“That the application to withdraw Motions on Notice dated and filed March 25, 2025; dated and filed on March 28, 2025 and dated and filed on April 2, 2025 is granted as prayed.

“That the applications are hereby dismissed accordingly.

“That the Deputy Chief Registrar/Admiralty Marshall is directed to serve parties who apply for the Orders of the Court with same including the instant order.

It would be recalled that FBN had obtained a Mareva injunction from the Federal High Court in Lagos restraining all banks in Nigeria from releasing funds to GHL and its directors Nduka Obaigbena, Efe Damilola Obaigbena and Olabisi Eka Obaigbena.

The bank claimed it extended several credit facilities to GHL for the development of some oil mining lease assets, adding that while it diligently performed its obligations under the loan agreements, GHL allegedly breached them, but FBN has so far failed to provide any evidence of the breaches.

However, GHL denied owing First Bank and accused it of abusing the court process after getting benefits and profiting from the relationship.

The company said it signed the agreement believing and trusting that FirstBank would comply with its obligations to fund OML 120, “but it has clearly not done so”.

GHL has already dragged FBN to arbitration for several breaches and damages. But FBN has been trying to use the courts to stall the arbitration proceedings but has lost in all its attempts. The arbitration is under way