Armed police officers on Tuesday sealed the Lagos headquarters of Nestoil Limited after the Federal High Court authorised the enforcement of an asset seizure linked to an alleged multibillion-dollar debt default. The operation followed a ruling by Justice D. I. Dipeolu of the Lagos Division on October 22, 2025, granting a Mareva injunction, a court order freezing assets, to First Trustees Limited and its subsidiary, FBNQuest Merchant Bank.
The injunction targeted Nestoil Limited, its affiliate Neconde Energy Limited, and their principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi. Police officers, acting under the direction of the Deputy Inspector General of Police (Operations), assisted court bailiffs and the appointed receiver-manager in enforcing the ruling.
A certified letter from the court’s Deputy Chief Registrar, Longs G. Longwa, instructed the police to aid in the asset takeover. The letter read: “Pursuant to the Order of this Honourable Court dated 22 October 2025, you are requested to kindly use your good office to assist the Bailiffs of this Court in executing the attached copy of Court Order.”
The directive empowered law enforcement to provide security for the enforcement team at Nestoil’s head office, located at 41/42 Akin Adesola Street, Victoria Island, Lagos. This move effectively transferred operational control of the premises to the court-appointed receiver-manager.
Debt Dispute and Freezing of Assets
At the heart of the dispute lies a debt claim exceeding $1.01 billion and ₦430 billion as of September 30, 2025. First Trustees and FBNQuest Merchant Bank allege that Nestoil, Neconde Energy, and their directors defaulted on multiple credit facilities extended to them over several years.
Justice Dipeolu’s ruling froze the defendants’ bank accounts and shares across more than 20 Nigerian financial and corporate institutions. The list includes Citibank Nigeria, Guaranty Trust Bank, Fidelity Bank, Polaris Bank, Stanbic IBTC, Standard Chartered, Titan Trust Bank, and Wema Bank, among others.
The court appointed Abubakar Sulu-Gambari (SAN) as the receiver-manager on behalf of the plaintiffs to oversee the takeover and recovery process. He was granted authority to assume control of Nestoil’s assets, subsidiaries, and interests, including Neconde Energy’s stakes in Oil Mining Lease (OML) 42, jointly operated with the Nigerian National Petroleum Company Limited (NNPCL).
The Federal High Court further ordered the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPCL to cooperate with the receiver in managing the oil block’s production and revenue flows. The court also mandated multiple security agencies—including the Nigeria Police Force, Nigerian Navy, and State Security Service (SSS), to protect the takeover operations.
Broader Implications
The enforcement marks a major escalation in Nigeria’s ongoing corporate debt recovery battles, underscoring tightening credit enforcement by lenders amid growing concerns about non-performing loans in the energy sector.
Nestoil, one of Nigeria’s leading oil and gas engineering firms, now faces significant operational uncertainty as the dispute unfolds. The Federal High Court has adjourned further hearings to November 7, 2025, to consider the substantive motion on notice.
As of publication time, neither Nestoil nor its founder, Ernest Azudialu-Obiejesi, has issued an official statement on the court ruling or the police sealing of its premises.
