The Economic and Financial Crimes Commission (EFCC) intervention in the debt settlement dispute between local energy firm Nestoil Limited and a consortium of lenders has yielded further positive results, with the company paying an additional $40 million to the creditors.
The fresh payment on 19 October brought the total paid to the lenders so far to $100 million, people familiar with the matter told PREMIUM TIMES.
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It marks major progress in the structured repayment plan Nestoil and the lenders agreed to at a meeting earlier organised by the EFCC, which yielded an initial payment of $60 million from the oil firm to the banks.
The agreement set out a framework for repaying the outstanding debt, based on the parties’ agreed terms and applicable laws.
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The EFCC’s mediation in the dispute centres on certain financial transactions involving Nestoil, its affiliate Neconde Energy Limited, and the banks.
The lenders welcomed the latest payment as a key, encouraging development and reaffirmed their commitment to continued cooperation with the EFCC and other relevant stakeholders to ensure full settlement of the debt.
The EFCC’s media department could not be reached for comment.
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Background
The feud between Nestoil and the lenders is a complicated legal battle that came to a head at the Supreme Court of Nigeria in June, prompting the court to annul a Court of Appeal order freezing the assets of Nestoil and Neconde Energy.
The lawsuit seeks to recover debts of more than $1 billion and N430 billion allegedly owed by Neconde and Nestoil, as well as Azudialu Obiejesi and Nnenna Azudialu-Obiejesi, their top promoters.
In October 2025, police officers acting on an order issued by Dehinde Dipeolu, a judge of the Federal High Court, Lagos Division, sealed Nestoil’s headquarters in Lagos. The order gave FBN Quest Merchant Bank and First Trustees leave to take over Nestoil’s assets.
Justice Dipeolu granted multiple orders freezing the defendants’ bank accounts and shares held with more than 20 financial and other institutions in Nigeria.
The court also authorised Abubakar Sulu-Gambari (SAN), the receiver/manager appointed by the plaintiffs, to take over Nestoil’s headquarters and other identified assets.
Justice Dipeolu also directed multiple security agencies to help enforce the receivership.
Following Nestoil’s complaints about the proceedings, John Tsoho, the chief judge of the Federal High Court, reassigned the case to another judge.
On 20 November 2025, J. Osiagor, the new Judge, revoked the earlier receivership-enforcement order.
FBN Quest Merchant Bank and First Trustees appealed against the decision on 22 November 2025.
In November 2025, the Court of Appeal issued a restorative injunction in an ex parte application filed by the financial institutions.
The order reversed Justice Osiagor’s decision and also forbade Nestoil, Neconde and their agents from obstructing the receiver/manager pending the hearing of the appeal.
In January, the Supreme Court ordered all the parties in the suit to return to the Court of Appeal to resolve a major procedural issue.
It held that the appeal court had to resolve the issue of legal representation.
Consequently, in January, the Court of Appeal 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.
But in June, the Supreme Court ruled that the appellate court exceeded its authority by issuing an ex parte application against the oil firms.
It ruled that the Court of Appeal assumed jurisdiction and granted an injunction against Neconde and Nestoil when the dispute was not properly before the court.
It also rebuked the lower court for misusing the judicial process in granting a stay of proceedings at the Federal High Court, Lagos.
The court consequently annulled the freezing order on Nestoil’s and Neconde’s assets.
Impact of Nestoil debt on banks
“Prior to the Court Action, Nestoil obtained several bilateral loan facilities from eight (8) lenders dating back to 2010 and serially defaulted on all the various repayment obligations,” the consortium of lenders said in a statement following the Supreme Court’s ruling.
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“Nestoil subsequently proposed restructuring the bilateral loan facilities to bring the Lenders into a Global Club to ease the administration of the indebtedness. Lenders, in good faith, agreed to this restructuring, but Nestoil has again serially defaulted on its repayment obligations since the restructuring became effective in 2023,” the lenders added.
According to a May press release, Nestoil’s alleged $2 billion distressed loan has triggered “a historic balance sheet reset” and “a lack of dividend payments” at some major Nigerian banks.
The statement listed First Bank, United Bank for Africa, and Access Bank among the financial institutions most affected by Nestoil’s bad loans.
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