Supreme Court Rules on First Bank and GHL Oil Dispute

The Supreme Court of Nigeria issued a ruling on Friday, dismissing a case involving First Bank of Nigeria (FBN) and GHL concerning a financial agreement related to crude oil production. The apex court determined that the dispute, which arose from allegations of breach of a financial agreement, did not fall within the jurisdiction of the Federal High Court as it was not an admiralty matter.

The court, led by a panel including Justices Uwani Musa Abba Aji and Emmanuel Agim, set aside a previous judgment from the Court of Appeal. The case involved the FPSO Tamara, which was carrying crude oil from OML 120.

FBN had accused GHL of diverting proceeds from crude sales instead of remitting them to the agreed account, claiming GHL owed $19 million. The Supreme Court ruled that FBN did not have the right to seize the crude cargo and emphasized that the financial agreement did not create ownership rights over the crude oil.