The Federal High Court in Lagos has set aside a Mareva injunction freezing the assets of Nestoil Limited, its affiliate Neconde Energy Limited, and its principal promoters in respect of an alleged multi-billion-dollar debt default.
Justice D.E. Osiagor of the Lagos court, after hearing the submissions of counsel on Thursday on whether or not the extant Mareva orders earlier granted by Justice Deinde Dipeolu of the same court are still subsisting, ruled that “there is no more a subsisting ex parte order having spent 14 days of the motion on notice challenging the same.”
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According to a court document obtained by PREMIUM TIMES, the judge also stated that “the order having been spent has left the arguments of the parties affected by the ex parte order mute or academic.”
Mr Dipeolu had, on 22 October, issued Mareva injunctions against Nestoil and Neconde, along with their principal promoters, Ernest Azudialu-Obiejesi and Nnena Obiejesi.
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He granted multiple orders freezing the defendants’ bank accounts and shares in over twenty financial and other institutions in Nigeria.
They included Citibank Nigeria Limited, Central Securities and Clearing Systems PLC, Fidelity Bank PLC, Guaranty Trust Bank PLC, Globus Bank Limited, Keystone Bank Limited, Opay Limited, Polaris Bank Limited, Providus Bank Limited, Stanbic IBTC Bank Limited, Standard Chartered Bank Nigeria Limited, Sterling Bank PLC, Titan Trust Bank Limited, Unity Bank PLC, Wema Bank PLC, Gobowen Exploration and Production Limited, Hammako Consortium Limited, Krawcod Properties Limited, Santa Spring Oil and Gas Limited, Marine & Ocean Infinity Nigeria Limited and White Dove Shipping Co. Ltd.
The legal dispute resulted from a debt claim by FBNQuest and First Trustees against Nestoil, Neconde Energy, and their directors.
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The plaintiffs alleged that the companies and their promoters owed more than $1.01 billion and ₦430 billion as of 30 September 2025, in respect of various credit facilities.
In addition to freezing Nestoil’s assets and those of its affiliate, the court instructed multiple security agencies, including the Nigeria Police Force, the Nigerian Navy, and the State Security Service, to provide protection and assist in enforcing the takeover.
Mr Dipeolu also authorised Abubakar Sulu-Gambari, appointed by the plaintiffs as the receiver/manager, to take over Nestoil’s headquarters located at 41/42 Akin Adesola Street, Victoria Island, Lagos, and other identified assets.
The order empowered the receiver/manager to take control of Neconde’s interests in OML 42, jointly operated with the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries.
The Nigerian Upstream Petroleum Regulatory Commission and NNPCL were also instructed to grant the receiver access to the oil block and cooperate in managing production and revenue flows.
The order, certified by the court’s deputy chief registrar, Longs G. Longwa, and addressed to the deputy inspector general of police (operations), directed the police to assist court bailiffs and the appointed receiver-manager in enforcing the ruling.
On 28 October, armed policemen sealed the headquarters of Nestoil in Lagos, acting on an order that authorised First Trustees and FBNQuest Merchant Bank to take over the company’s assets due to the alleged debt.
Allegations of misconduct
On 3 November, Nestoil and Neconde filed petitions with the National Judicial Council and the Chief Judge of the Federal High Court, Justice John Tsoho, requesting that the ongoing suits be reassigned to another judge pending review.
According to the petitioners, the court issued the receiver/manager sweeping powers without proof that Nestoil and Neconde were dissipating funds.
They also contended that the judge failed to verify the ownership of the multi-storeyed office complex in Victoria Island, legally owned by Drawcok Estates Limited, where the two companies are tenants.
The filings noted that some banks, including Ecobank Nigeria Limited and United Bank for Africa (UBA), dissociated themselves from the suit, appointed their own receivers, and initiated separate legal actions.
On 7 November, when the matter came up for hearing, Mr Dipeolu told parties that a petition alleging misconduct had been filed against him and forwarded to the chief judge.
The development led to the adjournment of proceedings.
A legal practitioner with knowledge of the matter told PREMIUM TIMES that the petition was “part of an elaborate plot” to discredit and remove Justice Dipeolu from the case, allegedly to pave the way for a more pliable judge.
“As you know, Justice Dipeolu has a reputation for firmness and integrity,” the lawyer said. “He granted orders that sent a clear message to delinquent borrowers who have for years defaulted on loan obligations. Some powerful people are unhappy about this.”
According to the source, those displeased with the ruling wrote a petition accusing Mr Dipeolu of bias and were planning to pressure the chief judge to reassign the case.
“They want the chief judge to use his office to move the matter to a compromised judge who will vacate the existing orders and set Nestoil and Neconde free,” the source claimed.
“The truth of the matter is that we don’t have faith in Justice Dipeolu,” Mr Azudialu-Obiejesi told PREMIUM TIMES.
“He is biased, and we don’t think we can get justice from him. We employ about 3,000 people, yet he gave an ex parte order shutting down our operations and confiscating our assets without hearing our side or confirming if we indeed owe the banks.”
Mr Osiagor, on Thursday, adjourned the case to 25 November for the motion for joinder and 12 December for the hearing of pending applications.
READ ALSO: Standoff at Nestoil headquarters as owners, receiver manager clash
Receivership
Meanwhile, Mr Sulu-Gambari has said that the decision of the court to vacate the Mareva order does not affect his receivership over Nestoil.
The receiver/manager disclosed in a press statement putting commercial banks and other affected parties on notice on Thursday that the ruling of the court also does not affect its receivership over all the undertakings, stocks, goodwill, plant and machinery, moveable and immovable assets of Neconde Energy Limited in Oil Mining Lease (OML 42).
“The undersigned was appointed Receiver/Manager pursuant to the Deeds of Appointment dated August 19, 2025, filed at the Corporate Affairs Commission (CAC), notification of which was made at pages 45-46 and 32-33 of the Punch and Guardian Newspapers of October 29, 2025,” Mr Sulu-Gambari said in the statement.
“Consequently, the undersigned remains Receiver/Manager,” he added.
Mr Sulu-Gambari noted that legal redress is still being pursued to the full extent of the law with the new ruling.
He warned that any dealings with persons purportedly acting on behalf of Nestoil or Neconde in respect of the assets or matters related to the companies, including projects, contracts, and commitments in the oil, gas, power, and infrastructure sectors, must obtain the authorisation of the appointed receiver/manager.
Not doing so makes such dealings illegal and “shall give rise to legal implications,” he added.
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