Supreme Court Quashes Order Freezing Neconde, Nestoil Assets Over $1bn Debt Dispute
By Aboki Forex —
The Supreme Court of Nigeria has set aside a Court of Appeal order that froze the assets of Neconde Energy, Nestoil Limited, and their principal promoters over an alleged multibillion-dollar debt default.
A five-member panel of the apex court ruled on Monday in Abuja that the Court of Appeal exceeded its powers when it issued an ex parte application against the oil firms. Justice Stephen Adah, who delivered the lead judgment, said the appellate court assumed jurisdiction and granted an injunction when the dispute was not properly before it.
The Supreme Court also rebuked the lower court for misusing the judicial process by granting a stay of proceedings at the Federal High Court in Lagos.
Background to the Dispute
The legal battle stems from efforts by FBN Quest Merchant Bank and First Trustees to recover debts totalling over $1 billion and N430 billion allegedly owed by Neconde, Nestoil, Azudialu Obiejesi, and Nnenna Azudialu-Obiejesi, their principal promoters.
As part of the recovery process, the financial institutions appointed Abubakar Sulu-Gambari as receiver and manager over Nestoil and Neconde. Justice Deinde Dipeolu of the Federal High Court, Lagos, later issued a Mareva injunction freezing the companies’ accounts and shareholdings across more than 20 financial and corporate institutions. Multiple security agencies were directed to help enforce the receivership.
The order empowered the receiver to take possession of Nestoil’s headquarters and other assets, and to 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, the Chief Judge of the Federal High Court, Justice John Tsoho, 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 the decision on 22 November 2025. On 29 November 2025, the Court of Appeal, in a ruling delivered by Justice Yargata Nimpar, issued a restorative injunction via an ex parte application. That order reversed Justice Osiagor’s decision and restrained Nestoil, Neconde, and their agents from obstructing the receiver pending the appeal.
On 12 January, the Supreme Court directed all parties to return to the Court of Appeal to resolve a major procedural issue around legal representation. On 23 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 had suspended Azudialu-Obiejesi’s powers.