The receiver has repossessed the corporate headquarters of Nestoil Limited in Victoria Island, Lagos, after the court of appeal issued what it called a “restorative injunction.”
This development resets control of the oil and gas engineering firm following months of legal battles tied to a reported $2 billion debt owed to a consortium of lenders.
The takeover came after Nestoil and its sister company, Neconde Energy Limited, previously obtained a federal high court injunction ordering the receiver to pause all actions.
That ruling temporarily slowed the lenders’ attempt to enforce earlier orders against the companies.
Appeal Court Reverses Steps Taken by Respondents
FBN Merchant Bank Ltd and First Trustees Ltd filed a motion ex-parte on November 26, 2025, asking the appeal court to reverse all steps taken under the earlier federal high court ruling.
Their application sought:
“An order of interim restorative injunction reversing all steps taken by the Respondents… pursuant to the order of the Federal High Court… pending the hearing and determination of the Appellants’ Motion on Notice filed on the 26th day of November 2025.”
“An order of interim injunction restraining the Respondents… from interfering with and interrupting the Receiver/Manager in the performance of his duties pending the hearing and determination of the Appellants’ Motion on Notice filed on 26th November 2025.”
“An order staying further proceedings at the lower court pending the hearing and determination of the Appellants’ Motion on Notice filed on the 26th November 2025.”
Justice Yargata Nimpar of the Lagos division granted all requests on November 28, 2025, clearing the way for the police to take over the Nestoil building on Monday.
The appeal court also fixed December 4, 2025 for hearing the motion on notice.
Background of the Debt Dispute
The conflict began on October 22, 2025, when a federal high court issued a Mareva injunction authorizing First Trustees and FBNQuest Merchant Bank to take over Nestoil’s assets.
Justice D. I. Dipeolu barred any dealings in $1,012,608,386.91 and N430,014,064,380.77, representing the companies’ total debt as of September 30.
The injunction also listed additional liabilities personally guaranteed by promoter Ernest Azudialu-Obiejesi.
These included over N366.8 billion, $61.2 million, $152 million, and N10.4 billion owed to Access Bank, First Bank, and Zenith Bank.
Nestoil and its promoters later approached another federal high court seeking to set aside the Mareva order before the latest appeal court intervention.
This move created the legal standoff now unfolding across multiple courts.
