A Federal High Court in Lagos has ordered the takeover of assets belonging to Nigerian oil and gas firm Nestoil Limited, following a legal dispute over an alleged $1 billion debt owed to First Bank Holdings and other lenders.
The ruling, issued on October 22, granted a Mareva injunction empowering the bank to assume control of Nestoil’s assets pending resolution of the debt case.
The injunction also extends to Neconde Energy Limited—an affiliate of Nestoil—and includes restrictions on asset transfers involving key company promoters.
Justice D. I. Dipeolu, who presided over the case, directed the affected parties not to tamper with any assets, including funds in Nigerian and foreign bank accounts, until the matter is fully adjudicated.
The court’s decision was based on an ex parte application filed by Access Bank and other lenders seeking to recover the outstanding debt.
On October 28, Nestoil issued a public statement in response to the court’s ruling, admitting it has a commercial matter currently before the courts and which it was “addressing through appropriate legal and regulatory channels.”
“We continue to cooperate fully with all relevant authorities and financial partners to resolve any outstanding matters in a transparent and responsible manner,” the company stated.
“Constructive discussions are ongoing, and we remain confident that these engagements will result in a fair and lasting resolution.”
Nestoil said all its subsidiaries, projects, and commitments will “continue without disruption” and that it “remains financially strong, operationally stable, and strategically focused.”
Founded in 1991, the company is known for its engineering, procurement, construction, and commissioning (EPCC) services and has been involved in several high-profile infrastructure projects across the country.
In addition, the court directed 17 Nigerian banks—including GTBank, Fidelity, Zenith, Access, and Stanbic IBTC—to freeze the accounts of Nestoil, its affiliate Neconde Energy Limited, and its promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.
Azudialu-Obiejesi is said to be personally liable for additional loans totalling more than $200m with several banks, including Access Bank, First Bank, and Zenith Bank.
The company’s headquarters in Victoria Island, Lagos, has also reportedly been sealed by police, pending the final outcome of the case.
The legal action comes amid mounting financial pressures and increasing regulatory scrutiny in Nigeria’s energy sector.
Industry analysts say the outcome of the case could reshape financial relationships between indigenous operators and lenders.
The next hearing is scheduled for November and will determine whether the interim orders will be made permanent.