First Bank of Nigeria (FBN) has admitted defeat in the highly publicized Mareva case against General Hydrocarbons Limited (GHL) but is now attempting to appeal the ruling without due process. The oil firm has accused the bank of deliberate misrepresentation and abuse of court process as FBN seeks to delay the implementation of a Federal High Court order lifting the freezing of GHL’s accounts.
The legal battle, which has drawn significant attention in Nigeria’s financial and oil sectors, centers around FBN’s failure to fulfill its obligations under a financing agreement, leading GHL to initiate an arbitration process. However, FBN proceeded to obtain an interim Mareva Order to freeze the accounts of GHL, its directors, and shareholders. On December 30, 2024, Honourable Justice Deinde Dipeolu of the Federal High Court, Lagos, set aside this order, ruling in favor of GHL.
FBN’s Attempt to Block Compliance
Following the lifting of the Mareva Order, FBN issued a public statement arguing that banks should not comply with the ruling, claiming that the process for enforcing the decision had not yet been completed. The bank further stated that it had filed an appeal against the ruling and had also applied for an injunction or suspension of the discharge order pending the outcome of the appeal.
However, GHL has dismissed these claims, stating that at the time of publication, no such appeal or injunction application had been filed or served on them. The oil firm further asserted that even if such legal filings existed, they would not automatically suspend compliance with the court’s ruling.
Our attention has been drawn to various reports and advertisements by First Bank over the weekend, falsely claiming that they have appealed or are appealing the ruling of Justice Dipeolu. This is another incidence of gross abuse of court process, GHL said in a statement.
GHL: No Legal Basis for FBN’s Claims
GHL has strongly maintained that the ruling by Justice Dipeolu lifting the Mareva Order is final and enforceable, stating:
1.A declaratory court order cannot be stayed or suspended—meaning that FBN cannot legally prevent its implementation.
2.Compliance with the order is already a completed act—therefore, any attempt to reverse it after it has been obeyed is legally invalid.
3.Banks have already complied with the ruling—except perhaps FBN, which continues to misrepresent the legal situation.
These orders were set aside by Justice Dipeolu primarily because FBN had deliberately withheld material facts about an existing order of Justice Allagoa, GHL explained.
The Justice Allagoa ruling, which was made prior to FBN’s Mareva Order, had already restrained First Bank from approaching the courts to enforce the facility agreement with GHL while arbitration was ongoing. This means FBN’s actions were in direct violation of a pre-existing court order.
No Legal Justification for Non-Compliance
GHL has also clarified that even if FBN had filed a notice of appeal and a motion for injunction, these filings do not automatically stop the enforcement of the court’s ruling.
“No positive orders of court have been made to bind the banks or GHL. The publications made by FBN are misleading and should be disregarded,” the company said.
According to GHL, the only valid legal status at this point is the order lifting the Mareva injunction, which banks are expected to obey. The oil firm described FBN’s appeal strategy as a delay tactic aimed at evading responsibility for its contractual and financial obligations.
Arbitration Process Ongoing
While FBN tries to block compliance with the court’s decision, GHL has reaffirmed its commitment to the ongoing arbitration process. This arbitration was initiated over FBN’s non-compliance with its obligations, despite the bank declaring profits during a period when it claimed losses in 2021 and 2022.
GHL has made it clear that it will continue to participate in the arbitration proceedings and bring this dispute to a logical conclusion.
The Mareva case between First Bank and GHL has exposed serious legal and financial issues, raising concerns about FBN’s handling of corporate disputes. While the court has lifted the Mareva Order, allowing GHL full access to its accounts, FBN’s refusal to comply raises questions about its adherence to the rule of law.
With arbitration still ongoing, the outcome of this dispute could have significant implications for First Bank, GHL, and the broader Nigerian financial sector.
