EFCC recovers another $40 million from Nestoil, total repayment hits $100 million

The Economic and Financial Crimes Commission has recovered an additional $40 million from Nestoil Limited in an investigation involving the oil and gas company, its affiliate Neconde Energy Limited and a consortium of lenders. The payment, made on October 19, 2026, brings total recoveries under a repayment arrangement to $100 million. It follows an earlier $60 million payment reported on August 17, 2026.

Lenders confirm payment

The lenders said the latest recovery is a significant step towards recovering outstanding obligations owed by Nestoil, although a substantial portion of the indebtedness remains unpaid. The payment followed a structured repayment arrangement reached at a meeting chaired by EFCC Chairman Olanipekun Olukoyede. The arrangement provided a framework for orderly repayment of the outstanding debt, subject to terms agreed by the parties and applicable laws.

The lenders welcomed the payment and reaffirmed their commitment to cooperate with the EFCC and other stakeholders to ensure full recovery. They said the recovery matters for the stability and integrity of Nigeria’s financial system. “The recovery of funds owed to financial institutions ultimately serves to protect the interests of lenders, depositors and other legitimate stakeholders whose funds are deployed in the financial system,” the lenders stated.

They added that the $100 million cumulative recovery is substantial progress, but the process is not concluded because a significant part of the outstanding indebtedness remains to be settled under the agreed repayment plan.

How the debt dispute grew

The consortium comprises Access Bank Plc, Zenith Bank Plc, Ecobank, African Export-Import Bank (Afreximbank), First Bank of Nigeria Limited, First City Monument Bank, United Bank for Africa Plc and Union Bank of Nigeria Plc. In June 2026, the lenders said Nestoil’s total indebtedness had risen to about $1.084 billion and N469.43 billion. They said the obligations remained outstanding despite several attempts to restructure the facilities.

Nestoil obtained several bilateral credit facilities from the financial institutions from 2010. The loans were later brought under a restructuring arrangement known as the “Global Club” after Nestoil proposed consolidating the bilateral loans to simplify administration and repayment. The restructuring became effective in 2023. The lenders alleged repayment defaults continued after the restructuring, with outstanding repayment obligations at one stage reaching $240.51 million and N141.21 billion.

The dispute escalated in October 2025 when a Federal High Court in Lagos granted a Mareva injunction freezing assets, bank accounts and shares linked to Nestoil, Neconde Energy Limited and their promoters across several Nigerian financial institutions. Court filings at the time put the alleged indebtedness at about $1.01 billion and N430 billion as of September 30, 2025. The court appointed Abubakar Sulu-Gambari, SAN, as receiver-manager and authorised him to take possession of identified assets. The order led to the sealing of Nestoil’s headquarters on Akin Adesola Street in Victoria Island, Lagos, by police officers.

Nestoil said it remained operational and described the matter as a commercial dispute being addressed through the courts. The legal battle moved through the Federal High Court, Court of Appeal and Supreme Court. In June 2026, the Supreme Court set aside interim preservative orders previously granted by the Court of Appeal and directed parties to return to the lower court to address substantive issues. The consortium later said the Supreme Court decision did not extinguish Nestoil’s indebtedness or invalidate the debt recovery process.

What it means

The $40 million payment is one of the most significant publicly known cash recoveries from Nestoil since the dispute escalated. For lenders, it supports balance sheet recovery, but the remaining obligations are still large and tied to the agreed repayment plan.