FBN Quest Merchant Bank Limited and First Trustees Limited have appealed the decision of Justice D.E Osiagor of the Federal High Court Lagos on Thursday, setting aside earlier orders granted by Justice Deinde Dipeolu of the same court against Nestoil Limited in respect of an alleged multi-billion dollar debt default.
In a motion on notice filed at the Court of Appeal in Lagos on Friday and obtained by PREMIUM TIMES, the appellants sought an order suspending the operation or effect of the orders of the high court made on 20 November 2025 pending the hearing and determination of their appeal.
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They also requested the court to issue an injunction prohibiting Nestoil and its affiliate, Neconde Energy, as well as its principal promoters – Ernest Azudialu-Obiejesi and Nnena Obiejesi – from enforcing or taking any action in implementing the order of the lower court pending the hearing and determination of their appeal.
“The judgement of the Court of Appeal will be rendered nugatory, if any steps were to be taken in the proceedings at the Lower Court without first determining the issues raised in the appellants’ appeal,” the motion on notice stated.
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On Thursday, the lower court had vacated a Mareva order freezing the assets of Nestoil, Neconde, Mr Azudialu-Obiejesi and Mrs Obiejesi in respect of the alleged debt default.
Justice Osiagor, after hearing the submissions of counsel on whether or not the extant Mareva orders earlier granted by Justice Dipeolu 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.”
On 22 October, Justice Dipeolu had issued multiple orders freezing the defendants’ bank accounts and shares in over 20 financial and other institutions in Nigeria.
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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 plaintiffs alleged that Nestoil, Neconde 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.
Justice Dipeolu also authorised Abubakar Sulu-Gambari, who was 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.
Allegations of bias, misconduct
On 3 November, Nestoil and Neconde filed petitions at the National Judicial Council and to the chief judge of the Federal High Court, Justice John Tsoho, through which they requested that the ongoing suits be reassigned to another judge pending review.
The appellants claimed they were not copied in the said petition.
According to the petitioners, the court issued the receiver/manager sweeping powers without proofs 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 during proceedings, Justice Dipeolu told parties that a petition alleging misconduct had been filed against him and that the chief judge had instructed the court not take any further steps regarding the matter.
“There is a petition against me alleging bias and Judicial misconduct in this matter and other mater involving the defendants pending before me further to which I have been directed by the Honourable Chief Judge not to take further steps in this matter,” Justice Dipeolu said in a statement signed by him on 7 November.
“Pursuant to the said directive, I am unable to take further steps in this matter till the complained is resolved save for me to say that I do not have any personal interest in this matter or any other matter pending before me,” he added.
ALSO READ: Receiver Manager says Nestoil Limited & Neconde Energy remain under receivership
In a notice of appeal to the Court of Appeal in Lagos on 10 November, the counsel to FBN Quest Merchant Bank and First Trustees stated that in so far as the petition written against Justice Dipeolu was not copied to them by the lower court, not to take further steps in the suit on account of a directive of the chief judge of the Federal High Court was tantamount to the “transgression of the right of the appellants to a fair hearing as guaranteed” by the 1999 Constitution of the Federal Republic of Nigeria.
“By suspending the progress of proceedings in deference to the directive of the Chief Judge over a one-sided allegation of bias and misconduct, the appellants’ right to a speedy hearing of and determination of its case was put in abeyance,” the counsel to the appellants said.
On 12 November, the plaintiffs filed a motion on notice at the Court of Appeal Lagos registry, seeking an order of the Court of Appeal Staying Proceedings in the suit before the Federal High Court Lagos.
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 that are displeased with the ruling wrote a petition accusing Justice 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.”
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