The Federal High Court in Lagos has ordered the freezing of assets belonging to Nestoil Limited and its affiliates over an alleged $1 billion debt owed to a consortium of Nigerian banks.
Justice Dehinde Dipeolu, in a ruling delivered on October 22, 2025, granted a Mareva injunction restraining Nestoil, Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi, from tampering with or disposing of their assets pending the determination of a debt recovery suit filed by First Trustees Limited and FBNQuest Merchant Bank Limited.
Acting on behalf of the creditor banks, the applicants secured a court order authorising them to take possession and assume control of Nestoil’s assets under receivership.
Following the court directive, police officers on Tuesday sealed Nestoil’s corporate headquarters located at 41/42 Akin Adesola Street, Victoria Island, Lagos, to enforce the order and ensure full compliance.
Staff members were ordered to vacate the premises as court bailiffs and enforcement officers executed the possession order, effectively placing the company under receivership.
Justice Dipeolu’s order covers funds, shares, and other assets linked to the defendants across more than 20 financial institutions, preventing any transfer or disposal during the ongoing proceedings.
The court also authorised the appointed receiver/managers to take control of the company’s operations and preserve its assets to prevent further encumbrance or alienation while the case continues.
According to the court filings, the order was sought to secure an alleged debt exposure of about $1.012 billion and ₦430 billion, which Nestoil and Neconde Energy reportedly owe to the consortium led by FBNQuest Merchant Bank.
The dispute stems from multiple credit facilities obtained by the companies, which the lenders claim have remained unpaid despite several restructuring efforts.
Nestoil, founded in 1991, is one of Nigeria’s foremost indigenous engineering, procurement, construction, and commissioning (EPCC) companies in the oil and gas sector.
Its affiliate, Neconde Energy Limited, was established in 2010 and holds a significant upstream interest in Oil Mining Lease 42 (OML 42) under a joint venture agreement with the Nigerian Petroleum Development Company (NPDC).
The receivership marks a major development in the financial dispute, with the court stressing that the injunction will remain in force until the substantive suit is fully determined.
