News Investigators/ The Court of Appeal has overturned the ruling by a Federal High Court in Port Harcourt in the case between First Bank of Nigeria (FBN) and General Hydrocarbons Limited (GHL) over the alleged diversion of proceeds from the sale of an oil cargo pledged as loan security.
The appellate court upheld arguments by the bank’s legal team, led by Babajide Koku (SAN) and Victor Ogude (SAN), that proceeds from the sale of crude oil cargo aboard the FPSO Tamara Tokoni had been improperly diverted.
The cargo had been pledged as security for loan facilities granted to GHL, a company linked to media mogul Nduka Obaigbena.
In its judgment, the Court of Appeal overturned Justice E.A. Obile’s ruling of March 2025, which had vacated enforcement orders obtained by the bank in January.
The court directed the Chief Registrar of the Court of Appeal, in conjunction with the Admiralty Marshal, to assume control of the crude cargo on the vessel to prevent dissipation or disposal pending resolution of the substantive dispute.
The Federal 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.
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.