Nestoil Tower Repossessed As Appeal Court Reverses Order On Alleged $1.01bn Debt

The Court of Appeal in Lagos temporarily restrained Nestoil Limited, Neconde Energy Limited, and two others from interfering with the duties of a receivership manager appointed over their assets amid an alleged $1.01 billion debt claim by FBNQuest Merchant Bank and First Trustees Limited.

The ex parte ruling was delivered by Justice Yargabta Nimpa, according to a certified true copy dated November 27, 2025.

The order followed a motion on notice by the financial institutions, seeking to restrain Nestoil Limited, Neconde Energy Limited, and two others from enforcing the reversal of a Mareva injunction (freezing order) on their properties, due to alleged $1.01 billion asset dissipation plans by the respondents.

In the ex parte motion filed by plaintiffs’ lead counsel Babajide Okun SAN on November 26, 2025, the institutions requested an interim restorative injunction to reverse steps taken by Nestoil, Neconde, and their founders or staff pursuant to the Federal High Court order (coram Osiagor J.) made on November 20, 2025, which lifted the freezing orders on their properties pending the hearing of the appellants’ motion on notice.

The key requests were: An order restraining the respondents, their agents, servants, affiliates, and privies from interfering with the receiver/manager in performing his duties, pending the hearing of the appellants’ motion on notice filed November 26, 2025.

An order staying further proceedings in the lower court pending the same motion.

After hearing Babajide Okun SAN and Victor Ogude SAN for FBNQuest and First Trustees, the judge granted the application as prayed, holding that the order will be subsisting until the determination of the motion on notice.

The court fixed December 4, 2025, for the hearing and directed service of the order and processes on the respondents.

Amid this ruling, Nestoil has yet to issue an official press statement on the development.

Okun had urged the Appeal Court to suspend the trial court’s order and restrain the respondents pending the appeal filed via notice on November 21, 2025.

He argued that the Federal High Court decision raised substantial points of law that could prejudice the case if reversal steps proceeded.

The plaintiffs claim Nestoil owes Access Bank Plc, Zenith Bank Plc, Ecobank Limited, Africa Export-Import Bank, First Bank of Nigeria Limited, First City Monument Bank, United Bank for Africa Plc, and Union Bank of Nigeria Plc (collectively “Nestoil Lenders”) $1,012,608,386.91 and N430 billion as of September 30, 2025, with accruing interest.

FirstTrust official, Babatunde Adewolu, deposed that Neconde, Nestoil founder Ernest Azudialu-Obiejesi, and Nnenna Obiejesi are joint and several obligors for the indebtedness.

He accused the founder of using shell companies to conceal and dissipate assets, warning that asset dissipation would prevent restoring the status quo if the appeal succeeds.

The court was informed that Nestoil and another entity are allegedly under receivership by deed, with its management no longer in control. Okun urged granting the motion in the interest of justice.

The dispute stems from a Mareva injunction issued on October 22, 2025, by Justice Deinde Dipeolu, freezing Nestoil’s assets, accounts, and shares in over 20 institutions.

It was secured by FBNQuest Merchant Bank Limited and First Trustees Limited (First Bank subsidiaries) over the alleged debt by Nestoil, Neconde, and promoters Ernest and Nnenna Azudialu-Obiejesi.

Justice Dipeolu appointed Abubakar Sulu-Gambari SAN as receiver/manager to take possession of Nestoil’s head office at 41/42 Akin Adesola Street, Victoria Island, Lagos, and other assets. Security agencies, including the police, navy, and SSS, were directed to assist enforcement, leading to armed police sealing the headquarters in late October.

Proceedings halted after Nestoil Chairman Ernest Azudialu-Obiejesi petitioned the Chief Justice, accusing Justice Dipeolu of bias, resulting in reassignment of the case to Justice Osiagor.

Nestoil is also seeking to vacate the Receivership order in the Federal High Court, Abuja, denying the debt.

This is among Nigeria’s largest commercial disputes before the Federal High Court, with liabilities over N1 trillion in naira and dollar terms.

The outcome may influence future high-stakes debt enforcement between corporates and banks.