First Bank Loses as Court Dismisses Case Against General Hydrocarbons

• After months of prolonged court hearings, a federal high court has dismissed the First Bank of Nigeria suit against General Hydrocarbons
• The court ruling stated that First Bank of Nigeria had breached court orders and abused court processes in its action
• The court also ruled over the ex parte orders First Bank secured on the 9th of January, 2025

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

A Federal High Court, sitting in Port Harcourt, has dismissed the First Bank of Nigeria (FBN) suit against General Hydrocarbons Limited (GHL).

Justice E.A. Obile, who sat over the case, dismissed the suit on the grounds of jurisdiction, upholding the arguments of the GHL counsel, Dr. Biodun Layonu, that the court lacked the requisite jurisdiction to hear the case.

GHL had earlier raised a notice of preliminary objection, contesting the court’s jurisdiction to entertain the case.

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In its ruling, Justice Obile described FBN’s case as an abuse of court process and a breach of the orders issued by Justice Allagoa on December 12, 2024, in Suit No. FHC/L/CS/1953/2024.

Court cites breach of orders

Justice Obile held in his ruling that First Bank conceded in paragraphs 18 and 19 of its counter-affidavit opposing the defendants’ notice of preliminary objection that the order made by Justice Allagoa restrained it from enforcing any receivables arising from the facility agreement between the parties.

The court also ruled that FBN’s attempt to distinguish this suit from Suit No. FHC/L/CS/1953/2024 was not tenable, as every subsequent agreement between the parties was based on the initial legally enforceable Memorandum of Understanding (MoU) between GHL and FBN, which the plaintiff repeatedly breached.

He added that by filing the suit, FBN sought to do precisely what it had been prohibited from doing, making it a case of abuse of court process, the SUN reports.

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On these grounds, the suit was dismissed, while GHL’s argument that the ex parte orders issued on January 9, 2025, had lapsed by operation of law was upheld.

First Bank reacts to claims of abusing court process

Recall that First Bank of Nigeria Limited (FirstBank) described General Hydrocarbons Limited's (GHL) allegation that it had exploited the legal system to be incorrect.

In a statement, the bank claimed to be the sole party to submit a substantial claim against GHL to the Federal High Court in Lagos, adding that its allegations and the dispute GHL filed for arbitration and sought preservation orders over are not the same.

First Bank had obtained a Mareva order blocking GHL's accounts due to a purported $225 million debt.

This order affected all GHL's bank accounts, and those of its directors, Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena, both with First Bank and other banks.

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First Bank refuses to unfreeze GHL accounts

In related news, First Bank of Nigeria Plc has given reasons why it cannot unfreeze General Hydrocarbons Limited (GHL) accounts, in line with the Federal High Court Order.

The order lifted the ex parte Mareva order placed on the assets of General Hydrocarbons Limited, its shareholders, and directors, mandating the banks to unfreeze the accounts.

The bank noted in its statement that it had already appealed the Federal High Court judgment lifting the Mareva order.

Source: Legit.ng