After the Court of Appeal overturned a Federal High Court ruling in its favor, First Bank of Nigeria Limited (FirstBank) achieved a significant legal victory.
GHL conflict The case involved GHL later rerouted crude oil revenues pledged as collateral for loan facilities.
Delivered on September 11, 2025, the decision of the appellate court overturned Justice Obile of the Federal High Court in Port Harcourt’s earlier ruling. which categorized the case as a straightforward debt recovery problem and rejected FirstBank’s claims.
The Court of Appeal, on the other hand, made clear that the case is mostly marine in character, highlighting that the crude oil aboard the FPSO Tamara Tokoni—the subject— Central asset still in contention of the promise is
The News Chronicle gathered that FirstBank sought the appeal via its legal representatives, Senior Advocates of Nigeria Babajide Koku and Victor Ogude, so safeguarding its interest in the promised cargo.
Authorizing the sale and restoring the earlier arrest order on the oil cargo, the Court let the appeal go through.
The court instructed significantly that money from the sale be kept under the custody of the Chief Registrar of the Court of Appeal in an interest-bearing escrow account.
This guarantees the funds remain secure and free from inappropriate usage till the case is completely concluded at both the arbitration and trial court levels.
Under the order, the Chief Registrar was tasked with taking possession of the crude oil cargo and keeping it secure against any likely loss.
This protection shows how the courts see the need to protect collateral in challenging marine and business situations.
Legal experts claim the ruling is a turning point as it builds confidence in the legal and financial institutions and validates the legitimacy of collateral contracts in Nigeria.
FirstBank’s decision confirms its demand for accountability in high-value transactions and also demonstrates its dedication to protect stakeholder interests.
The result stresses the part the courts play and sends both financial institutions and companies a strong message about the effects of breaking collateral agreements. in advancing honesty and justice in corporate transactions.
