The Supreme Court has struck down a Court of Appeal judgment that authorized the seizure of an oil vessel and its crude oil cargo belonging to General Hydrocarbons Limited (GHL), ruling that the lower courts overstepped their jurisdiction in what was fundamentally a contract dispute rather than a maritime matter.

In a unanimous decision delivered by a five-member panel, the apex court directed the immediate return of the seized vessel and the proceeds from the sale of its contents to GHL, the rightful owner. The justices held that the Federal High Court erred in assuming jurisdiction over a case that did not qualify as a maritime dispute, emphasizing that the matter was purely financial and contract-related.

The court further clarified that the underlying case involved an alleged breach of contract and did not vest First Bank of Nigeria with the authority to seize the oil vessel or sell its contents to recover a debt. As part of its ruling, the Supreme Court imposed a ₦5 million fine on First Bank of Nigeria.

The judgment effectively nullifies the earlier appellate court decision, restoring the vessel and its cargo to GHL and reaffirming the principle that courts must confine themselves to matters properly within their jurisdiction.