A Federal High Court in Lagos has reversed a Mareva injunction that previously froze the assets and bank accounts of Nestoil Limited in a high-stakes $1.01 billion debt dispute with FBNQuest Merchant Bank and First Trustees.
The ruling, delivered by Justice Daniel Osiagor, followed weeks of stalled proceedings caused by a petition alleging bias against the former presiding judge.
Nestoil announced the development in a public statement titled “PUBLIC NOTICE: NESTOIL WINS FIRST BANK ENTITIES/PROXIES IN FEDERAL HIGH COURT,” signaling a major shift in one of Nigeria’s most closely watched commercial litigation cases.
How the Courtroom Battle Unfolded
At Thursday’s hearing, counsel for the plaintiffs, Babajide Koku, SAN, told the court that his clients had filed a Notice of Appeal challenging Justice Deinde Dipeolu’s November 7 decision to step aside from the case. He argued that the appeal should halt ongoing proceedings until the Court of Appeal makes a determination.
However, Nestoil’s counsel, Dr. Muiz Banire, SAN, countered that a Notice of Appeal does not automatically pause proceedings in the Federal High Court. He cited Order 32 Rule 1 of the 2025 Civil Procedure Rules, stressing that preservative orders must comply with clear procedural standards.
Chief Wole Olanipekun, SAN, representing Neconde Energy Limited, added that the Chief Judge’s statutory power to transfer a case at any stage cannot itself be appealed. He insisted that the case must proceed under the new judge, regardless of the pending appeal relating to the former presiding judge.
Judge Declares Mareva Injunction Expired
After hearing arguments, Justice Osiagor ruled that the ex parte Mareva injunction granted in October had lapsed 14 days after Nestoil filed a motion challenging it. He held that this expiration rendered any further arguments about the freezing order “moot or academic.”
He delivered a clear position on the transfer of the case, stating: “The decision that transferred this matter is not appealable. This court will not stay proceedings where filings at the Court of Appeal refer to Dipeolu J. and not Osiagor J.”
The court then adjourned the matter to November 25 for a motion for joinder and to December 12 for hearings on other pending applications.
The Origin of the Dispute
The legal dispute dates back to October 22, 2025, when Justice Dipeolu granted an ex parte Mareva injunction freezing Nestoil’s assets across more than 20 banks. The order affected cash balances, shares, and properties linked to Nestoil, Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi.
The injunction stemmed from an alleged $1.01 billion and N430 billion debt tied to credit facilities issued to entities under the Obijackson Group. Court filings indicate that the loans were secured with shares, assets, and interests in oil fields associated with the companies.
The order also appointed Abubakar Sulu-Gambari, SAN, as receiver-manager, empowering him to take control of Nestoil’s head office on Akin Adesola Street, Victoria Island, Lagos. The enforcement directive instructed the Nigeria Police Force, Nigerian Navy, and State Security Service to support the receiver.
Enforcement and Fallout
Following the freezing order, armed police officers reportedly sealed Nestoil’s headquarters in late October. The enforcement highlighted the court’s aggressive approach to ensuring compliance in debt recovery cases involving major corporate borrowers.
During the last hearing before his recusal, Justice Dipeolu told the parties that he would take no further steps because of the bias petition filed by Nestoil’s Chairman, Ernest Azudialu-Obiejesi. That petition led to the matter being reassigned to Justice Osiagor, prompting the current round of procedural contests.
Meanwhile, Nestoil also approached the Federal High Court in Abuja in a separate application seeking to set aside the Lagos freezing order and stop further enforcement by the receiver-manager.
Why This Case Matters
The dispute between Nestoil and FBNQuest is one of Nigeria’s biggest corporate debt battles, with liabilities exceeding N1 trillion across dollar and naira exposures. The court’s reversal of the Mareva injunction changes the immediate legal landscape but does not end the underlying debt recovery war.
The outcome could shape future judicial approaches to Mareva injunctions, debt enforcement, and the limits of judicial powers in high-value commercial disputes. With billions at stake and multiple courts involved, the case will likely become a major reference point in Nigeria’s financial and legal sectors.
