Nestoil, Receiver Sulu-Gambari Clash After Supreme Court Annuls Asset Freeze

Nestoil Limited has fired back at Abubakar Sulu-Gambari, the receiver/manager appointed over the company and Neconde Energy over an alleged debt default. The verbal exchange follows a Supreme Court ruling delivered on Monday.

In a rebuttal to a recent press statement by the receiver, Nestoil accused Mr Sulu-Gambari of misleading the public. The company noted that while the receiver admitted the Supreme Court voided an earlier Court of Appeal ruling that granted him injunctive relief, he still directed the public to act as if the apex court's decision had no effect on his powers.

“Now that he has completely lost all judicial cover for his purported receivership, he has resorted to assuming the status of interpreter of the law to hoodwink the general public,” Nestoil said in the statement.

The company added: “Mr Sulu-Gambari has deliberately concealed or failed to disclose that the exercise of any powers purportedly arising from the alleged Deeds of Appointment has since been restrained, suspended, and placed in abeyance by subsisting orders of the Federal High Court, Abuja Division, presided over by Hon. Justice P. O Lifu in Suit No. FHC/ABJ/CS/2534/2025 since December 1, 2025.”

According to Nestoil, the Supreme Court in its ruling on 10 April 2026 decided that the authority of the receiver to act is the subject of interrogation in the case filed by its appointors at the Federal High Court. For that reason, the receiver cannot claim to exercise powers in the face of such a suit.

Nestoil also stated that any declaration that the receiver has the freedom to exercise unrestrained power over the company and Neconde or their assets is inaccurate, misleading and against current legal realities.

Supreme Court Ruling

The Supreme Court had on Monday annulled an order issued by the Court of Appeal that froze the assets of Neconde, Nestoil, and their principal promoters over an alleged loan default. It ruled that the appellate court went beyond the limits of its power in issuing an ex parte application against the two oil firms.

Justice Stephen Adah, who presided, stated that the appeal court assumed jurisdiction and issued an injunction when the dispute was not properly before the court. The Supreme Court also criticised the lower court for misusing the judicial process in granting a stay of proceedings at the Federal High Court, Lagos.

Background

The lawsuit 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.

To ease recovery, 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 company’s accounts and shareholdings in over 20 financial and corporate institutions. He also directed multiple security agencies to help enforce the receivership.

The order empowered the receiver 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 favouritism 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, rescinded the earlier receivership-enforcement order.

FBN Quest Merchant Bank and First Trustees appealed on 22 November 2025. On 29 November 2025, the Court of Appeal, in a ruling by Justice Yargata Nimpar, issued a restorative injunction in an ex parte application. The order reversed Justice Osiagor’s decision and forbade 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. The Court of Appeal, on 23 January, disqualified Wole Olanipekun, Muiz Banire, and other lawyers from representing Neconde and Nestoil. It ruled that the receivership had suspended Mr Azudialu-Obiejesi’s powers.