Court of Appeal: Banks Filed Petition in Bad Faith Against Tempo Energy — Ecobank, GTB, First Bank, Others to Pay ₦1.5M in Costs
The Court of Appeal in Abuja has delivered a decisive blow to a group of top Nigerian banks, dismissing their appeal in a protracted commercial dispute with Tempo Energy Nigeria Limited. The judgment, delivered on April 25, 2025, clears the path for the High Court of the Federal Capital Territory to resume full proceedings in the multi-party financial litigation.
The banks involved—Ecobank Nigeria, First Bank, GTBank, Fidelity Bank, Sterling Bank, Union Bank, Zenith Bank, and FBNQuest Trustees—had sought to challenge two procedural rulings made by the FCT High Court. These included the court’s decision to consolidate their objections with those raised by Tempo Energy, and the decision to adjourn proceedings to rule on applications to discharge ex parte orders granted in January 2021.
However, the Court of Appeal dismissed their arguments outright. In a strongly worded judgment, the appellate panel condemned the appeal as “reckless and hopeless,” calling it a blatant abuse of the judicial process. The court ordered the banks to pay ₦1 million in costs to Tempo Energy and an additional ₦500,000 to Aiteo Eastern Exploration Company, the second respondent in the case.
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Justice O.E. Abang, who delivered the lead judgment, criticized the banks for acting in bad faith and stalling the case for over four years. He remarked that if they had not rushed to file what he called a “frivolous” appeal, the trial court could have addressed their objections long ago.
Concurring with this view, Justice D.U. Okorowo also dismissed the appeal and emphasized the legal consequences of undermining court proceedings while a matter is pending. He warned against attempts to sidestep court authority through parallel actions like arbitration during ongoing litigation, invoking the doctrine of lis pendens—which renders any action on a matter in court potentially void.
The original case, filed in 2021 by Tempo Energy, involves a complex dispute over a facility agreement with several major financial institutions and Aiteo. Tempo Energy had secured injunctive relief from the FCT High Court, which later consolidated various objections from the parties into a single process. Instead of awaiting a ruling, the banks escalated the matter to the Court of Appeal, effectively freezing the proceedings for years.
Legal analysts are praising the appellate court’s decision as a reaffirmation of judicial efficiency and a warning against delay tactics in commercial litigation. The ruling is also seen as a major win for Tempo Energy, which has consistently pushed for a fair hearing despite stiff opposition from Nigeria’s banking giants.
With the appeal now out of the way, the High Court can finally move forward to determine the core issues of the case—an outcome that could have far-reaching consequences for how facility agreements and commercial disputes are resolved in Nigeria’s energy sector.
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