Supreme Court Voids Seizure of GHL Oil Vessel, Orders First Bank to Return Crude, Pays ₦5m Costs

The Supreme Court has overturned a Court of Appeal judgment that authorised the seizure of an oil vessel and its crude oil cargo belonging to General Hydrocarbons Limited (GHL) in a contractual dispute with First Bank of Nigeria.

In a unanimous decision delivered by a five-member panel, the apex court ordered the immediate return of the vessel and the proceeds from the sale of its crude cargo to General Hydrocarbons Limited, holding that the seizure was unlawful.

The court ruled that the dispute between GHL and First Bank arose from an alleged breach of contract and was not a maritime matter, meaning the Federal High Court lacked jurisdiction to entertain an action leading to the arrest of the vessel.

According to the justices, the disagreement was purely contractual and financial in nature and did not confer on First Bank the legal authority to seize the oil vessel or dispose of its cargo to recover an alleged debt.

The apex court consequently set aside the judgments of the lower courts that had permitted the vessel’s arrest and the sale of its contents.

In addition, the Supreme Court awarded ₦5 million in costs against First Bank of Nigeria in favour of General Hydrocarbons Limited.

The ruling marks a significant legal victory for GHL and clarifies that contractual debt disputes cannot be pursued through maritime enforcement procedures where the underlying claim is not maritime in nature.