Court Dismisses FirstBank’s Case Against General Hydrocarbons, Cites Lack Of Jurisdiction

The Federal High Court sitting in Port Harcourt, Rivers State, has dismissed a suit filed by First Bank of Nigeria (FBN) against General Hydrocarbons Limited (GHL), ruling that the court lacked jurisdiction to entertain the case.

Presiding over the matter, Justice E.A. Obile upheld the arguments of GHL’s counsel, Dr. ‘Biodun Layonu, SAN, who had challenged the court’s jurisdiction through a notice of preliminary objection. The court concluded that the suit was an abuse of court process and contravened an earlier order issued by Justice Allagoa on December 12, 2024, in Suit No. FHC/L/CS/1953/2024.

In its ruling, the court noted that FirstBank had acknowledged in its counter-affidavit that the earlier order by Justice Allagoa restrained it from enforcing any receivables related to the facility agreement between the parties. The court found that the bank’s attempt to distinguish the present case from the previous suit was unfounded, as all subsequent agreements stemmed from the legally binding Memorandum of Understanding (MoU) between GHL and FBN, which FBN allegedly breached multiple times.

By filing the suit, the court held that FirstBank was attempting to circumvent the earlier restriction placed by Justice Allagoa. As a result, the court dismissed the case, describing it as a clear case of abuse of court process.

The court also ruled that the ex-parte orders issued on January 9, 2025, had automatically lapsed by operation of law. The orders, which included the arrest and attachment of crude oil cargo on board the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni, were declared expired and subsequently set aside.

With this ruling, General Hydrocarbons Limited is now free to proceed with arbitration at the Lagos Court of Arbitration, where it has filed a case against FirstBank, seeking hundreds of millions of dollars in damages over multiple alleged breaches of obligations by the bank.

Reacting to the ruling, FirstBank expressed disappointment, stating that it strongly disagrees with the decision, which it described as a miscarriage of justice. The bank reaffirmed its commitment to protecting its interests and vowed to pursue legal remedies against debtors attempting to evade their financial obligations.

Meanwhile, FirstBank has lodged an appeal against the decision of the Federal High Court and has also filed an application seeking an injunction against GHL, pending the determination of the appeal.