Supreme Court clears General Hydrocarbon’s oil vessel from seizure

The Supreme Court of Nigeria on Friday set aside the Court of Appeal's order to seize the FPSO Tamara Tokoni. This vessel holds crude oil that oil-servicing company General Hydrocarbons put down as collateral for a loan from First Bank.

A panel of five judges ruled that the oil aboard the vessel should be returned to General Hydrocarbons. According to This Day newspaper, this was because the case started by the bank is about a contract, not an admiralty issue.

The court also said that both the Federal High Court and the Court of Appeal do not have the power to handle the case. They stated that this dispute is related to maritime law.

In September 2025, the Court of Appeal had ordered that the crude oil on the vessel be sold. They directed that the money from this sale should be kept in an interest-earning account managed by the chief registrar of the Court of Appeal.

The court rejected an earlier decision from the Federal High Court in Port Harcourt. That court had thrown out First Bank’s claims about the diversion of funds from the crude oil sale.

The appellate court confirmed that the case is indeed maritime in nature. They highlighted the need to protect the res, which is the crude oil cargo, as it is at the center of this legal matter.