First Bank says it has filed an injunction for a stay of execution so the detained oil cargo could remain arrested.
The First Bank of Nigeria said it has appealed the Federal High Court Port Harcourt's decision to dismiss the suit it initiated against General Hydrocarbons, an energy firm.
In a statement Tuesday night, the lender disagreed with the court's decision, which determined that the matter in contention is not a maritime claim but a debt recovery case.
The bank expressed dismay at the court's declaration that the arrest order against the cargo on the FPSO expired by effluxion of time within 14 days of its issuance, considering that it was ex-parte in nature.
Given its dissatisfaction with the ruling of the court, the bank has appealed against the decision.
It insisted that the cargoes of crude oil on the FPSO Tamara Tokoni remain arrested.
"While First Bank has great respect for the courts, it strongly disagrees with the ruling, which, in our view, constitutes a miscarriage of justice," the statement said.
"First Bank remains committed to protecting and securing the interest of its members and will relentlessly pursue justice against mischievous debtors seeking to use the machinery of the law to perpetuate mischief and evade their responsibility to offset outstanding obligations," the bank added.
BELOW IS THE FULL STATEMENT BY FIRST BANK
In a surprising twist of events, its decision delivered today, the Federal High Court, in a surprising shift from the true nature of FirstBank's claim, held that the matter is not a maritime claim but, rather, a simple case of debt recovery. This is quite surprising considering the fact that the order sought is to prevent further fraudulent sales of crude on the FPSO.
Shockingly, the court also held that the Arrest Order against the cargo, because it was exparte in nature, expired by effluxion of time within 14 days of its issuance.
Aggrieved by the decision, FirstBank lodged an appeal against the decision of the FHC. Also, FirstBank filed an application for an injunction of the court against GHL, pending the determination of the appeal. The Cargoes of Crude Oil on the FPSO TAMARA TOKONI remain arrested.
While FirstBank has great respect for the courts, it strongly disagrees with the ruling, which, in our view, constitutes a miscarriage of justice.
FirstBank remains committed to protecting and securing the interest of its members and will relentlessly pursue justice against mischievous debtors seeking to use the machinery of the law to perpetuate mischief and evade their responsibility to offset outstanding obligations.
First Bank Vs General Hydrocarbons: A Background
First Bank and FBN Quest Trustees approached the Federal High Court Lagos on 27 December 2024 with an ex-parte application to seek an order of Mareva injunction in respect of a total claim of $225.8 million, which is alleged outstanding indebtedness on General Hydrocarbons' account with First Bank as of 30 September 2024.
The court granted the order restraining all commercial banks in Nigeria from releasing or dealing in all monies and assets up to $225.8 million due to General Hydrocarbons and its Chairperson, Nduka Obaigbena, from any account maintained by them.
The court also blocked all commercial banks from releasing or dealing in all monies and assets up to the said amount belonging to Efe Damilola Obaigbena and Olabisi Eka Obaigbena, of which the named directors and shareholders.
Another order restraining the banks from dealing in or releasing such monies and assets due to the company, its agents, privies, subsidiaries and sister companies with the banks up to the same sum was issued.
In reaction, General Hydrocarbons and some of the defendants requested the court to cancel the order, asserting that the court was misled in granting it in the first place.
The energy firm claimed First Bank and FBN Quest Limited secured the order through fraudulent misrepresentation and concealment of material facts.
In January, the Lagos court reversed the Mareva injunction order, ruling that it contravened an existing order from a court of concurrent jurisdiction.
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First Bank later issued a statement saying it had appealed the discharge of the Mareva order against General Hydrocarbons, adding that it had also applied for an injunction and/or suspension of the order pending the appeal's determination.
However, on 9 January 2025, the Federal High Court in Port Harcourt granted some orders against General Hydrocarbons as requested by First Bank.
Justice E.A. Obile granted orders to arrest and/or attach or lien the entire oil cargo on board the floating production storage and offloading (FPSO) vessel Tamara Tokoni and an order requiring the officers of the Nigerian Navy, NUPRC, NIMASA, and the harbour master of the Nigerian Ports Authority to provide necessary assistance to the admiralty marshal of the court in enforcing the order of arrest.
The court vacated the orders Tuesday, but First Bank says it has since appealed the decision.
