The Supreme Court of Nigeria has set aside an order issued by the Court of Appeal, freezing the assets of Neconde Energy and Nestoil Limited as well as those of their principal promoters over an alleged multibillion-dollar debt default.
A five-member panel of the court on Monday in Abuja ruled that the appeal court exceeded the limits of its power when it issued an ex parte application against the oil firms.
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Stephen Adah, the presiding judge, stated in the ruling that the appellate court assumed jurisdiction and granted an injunction against Neconde and Nestoil when the dispute was not properly before the court.
The Supreme Court also rebuked the lower court for misusing the judicial process in granting a stay of proceedings at the Federal High Court, Lagos.
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Background
The dispute resulted from efforts by FBN Quest Merchant Bank and First Trustees to recover debts totalling over $1 billion and N430 billion allegedly owed by Neconde and Nestoil as well as Azudialu Obiejesi and Nnenna Azudialu-Obiejesi, their principal promoters.
As part of the recovery process, the financial institutions appointed Abubakar Sulu-Gambari as receiver/manager over Nestoil and Neconde.
Justice Deinde Dipeolu of the Federal High Court, Lagos subsequently issued a Mareva injunction, freezing the companies accounts and shareholdings across more than 20 financial and corporate institutions.
Multiple security agencies were also directed to assist in enforcing the receivership.
The order empowered the receiver/manager to take possession of Nestoil’s headquarters and other assets, and assume control of Neconde’s interest in OML 42, the oil block it operates jointly with NNPC Limited.
The receiver took possession of Nestoil’s head office on 22 October 2025.
Amid allegations of bias and misconduct by Nestoil and Neconde, John Tsoho, the chief judge of the Federal High Court, reassigned the case to another judge.
On 20 November 2025, the new judge, Justice J. Osiagor, revoked the earlier receivership-enforcement order.
FBN Quest Merchant Bank and First Trustees appealed against the decision on 22 November 2025.
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On 29 November 2025, the Court of Appeal, in a ruling delivered by Justice Yargata Nimpar, issued a restorative injunction in an ex-parte application filed by the financial institutions.
The order reversed Justice Osiagor’s decision and restrained Nestoil, Neconde and their agents from obstructing the receiver/manager pending the hearing of the appeal.
On 12 January, the Supreme Court directed all the parties in the suit to return to the Court of Appeal for resolution of a major procedural issue.
It stated that the lower court had to resolve the issue around legal representation in the case.
The Court of Appeal, on 23 January, disqualified Wole Olanipekun, Muiz Banire, and other lawyers appearing with them from representing Neconde and Nestoil.
It ruled that the receivership of Mr Sulu-Gambari had suspended Mr Azudialu-Obiejesi’s powers.
