Court Discharges $1bn Mareva Injunction Against Nestoil, Restores Control Of Assets

In a significant legal victory for Nestoil Limited and its affiliates, a Federal High Court in Lagos, lifted the Mareva injunction that had frozen the company’s assets and those of its directors over an alleged $1 billion debt claim.

Justice Daniel Osiagor who presided over the court issued the order following a directive from the Chief Judge of the Federal High Court to transfer the case from Justice Dehinde Dipeolu to his court.

The court ruled that the disputed Exparte injunction had lapsed and was no longer in effect, after hearing arguments that the order became spent 14 days after a motion to discharge it was filed, in accordance with the Federal High Court Rules.

The Mareva injunction, granted by Justice Dipeolu on October 22, 2025, had restrained Nestoil, its affiliate Neconde Energy Limited, and the company’s promoters, Dr. Ernest Azudialu-Obiejesi and Nnenna Obiejesi, from tampering with funds, shares, and other assets held across more than 20 financial institutions.

It also empowered First Trustees Limited and FBNQuest Merchant Bank Limited, acting for a consortium of creditor banks, to take possession of Nestoil’s assets under receivership.

At today’s proceedings, senior lawyers appeared for the parties as follows: Babajide Koku (SAN), for the plaintiffs; Dr. Muiz Banire (SAN), for Nestoil; Chief Wole Olanipekun, SAN, with Mr. Bode Olanipekun, SAN, for Neconde Energy Limited; while Chinonye Obiagwu (SAN) and Kehinde Ogunwumiju (SAN) represented the third and fourth defendants, respectively. While Olufemi Oyewole, appeared for parties seeking to be joined.

Addressing the court, Koku noted that the plaintiffs had filed a Notice of Appeal challenging Justice Dipeolu’s November 7, 2025 decision to recuse himself, and urged the court to halt proceedings pending the appeal.

In response, Banire argued that filing a Notice of Appeal does not automatically stay proceedings.

Citing Order 32 Rule 1 of the Federal High Court (Civil Procedure) Rules 2025, he submitted that the court retains inherent power to make preservative orders when necessary.

Chief Olanipekun (SAN) highlighted that under Section 22(1) of the Federal High Court Act, the Chief Judge has statutory authority to transfer any matter at any stage, and such transfers are not subject to appeal.

He further emphasised that once the matter is transferred, hearings must start afresh, and previous rulings cannot bind the new court.

Ogunwumiju and Obiagwu, both SANs, submitted that the matter was effectively restarting and, therefore, the Exparte injunction could not survive the transfer.

Ogunwumiju, specifically stated that under the rules, an Exparte order automatically lapses 14 days after a defendant files a motion to discharge it.

He cited judicial authorities affirming that Mareva injunctions are temporary emergency measures and cannot be prolonged indefinitely, noting that doing so violates Section 36(1) of the 1999 Constitution, which guarantees fair hearing.

Obiagwu (SAN) further argued that the defendants filed a motion on October 30 to set aside the order, making the injunction spent by law.

He contended that the Mareva injunction obtained by FBNQuest Merchant Bank Limited and First Trustees Limited against Nestoil Limited and Neconde Energy Limited had lapsed as of Friday, November 14, 2025, under Order 26 Rule 10(1) and (3) of the Federal High Court (Civil Procedure) Rules, 2019.

Delivering the bench ruling, Justice Osiagor affirmed the Chief Judge’s unappealable authority to reassign matters.

The court held that the Notice of Appeal pertained to a decision of the previous court and ruled that the Mareva injunction had lapsed by operation of law.

Justice Osiagor thereafter adjourned the matter to November 25 and December 12, 2025, for the hearing of the joinder motion and all pending applications, respectively.