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Supreme Court Rules Crude Oil Proceeds Dispute Not Within Admiralty Jurisdiction

The Supreme Court of Nigeria has ruled that disputes regarding crude oil sale proceeds do not fall under admiralty jurisdiction, even when the commodity is stored aboard a vessel. The case, General Hydrocarbons Limited versus First Bank of Nigeria Limited, centered on a financing dispute where First Bank sought to arrest a cargo of crude oil to recover funds. The Court clarified that because the claim arose from a breach of a commercial financing agreement rather than maritime activity, it does not constitute an admiralty claim. The ruling emphasizes that contractual rights to sale proceeds do not grant a bank ownership or security interest in the physical cargo itself.

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