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

In a unanimous decision, a five-member panel ruled that the Federal High Court erred in assuming jurisdiction over a case that is purely financial and contract-related, not a maritime dispute.

The court emphasized that the case involved a breach of contract, which means the First Bank of Nigeria (FBN) did not have the legal right to seize the vessel or sell its contents to recover a debt.As a result, the court ordered the return of the vessel and the proceeds from its sale to GHL.Additionally, the court imposed a ₦5 million fine on FBN for its actions.The case highlights the importance of proper legal procedures in debt recovery and the boundaries of judicial jurisdiction in contractual disputes.

The decision also underscores the need for financial institutions to adhere to contractual obligations and legal frameworks when pursuing debt recovery.The ruling is significant for both corporate law and maritime law, as it clarifies the separation between financial and maritime jurisdictions.

This case may set a precedent for similar disputes in the future, emphasizing the importance of correct legal channels in resolving commercial conflicts.