Nestoil and Receiver Clash Over Supreme Court Ruling

Nestoil Limited and Abubakar Sulu-Gambari, the receiver/manager in charge of the company and Neconde Energy, are in a heated back-and-forth over a recent Supreme Court ruling.

The argument started after the Supreme Court made its ruling on Monday. Nestoil reacted to a press statement from Sulu-Gambari. In that statement, Sulu-Gambari admitted that the Supreme Court canceled an earlier ruling from the Court of Appeal that gave him an injunction. But he told the public to act as if the Supreme Court's decision did not change his power as receiver/manager.

Nestoil responded, saying, "Now that he has completely lost all judicial cover for his purported receivership, he has resorted to assuming the status of interpreter of the law to hoodwink the general public."

In the statement, Nestoil added, "Mr Sulu-Gambari has deliberately concealed or failed to disclose that the exercise of any powers purportedly arising from the alleged Deeds of Appointment has since been restrained, suspended, and placed in abeyance by subsisting orders of the Federal High Court, Abuja Division, presided over by Hon. Justice P. O Lifu in Suit No. FHC/ABJ/CS/2534/2025 since December 1, 2025."

Nestoil explained that the Supreme Court ruled on 10 April 2026 that the receiver's authority is being questioned in a case filed by its appointors at the Federal High Court. Because of this, Nestoil said the receiver cannot claim to have powers while that case is ongoing.

The oil firm also stated that any claim saying the receiver/manager can act freely over the company and Neconde or their assets is wrong, misleading, and does not reflect the current legal situation.

On Monday, the Supreme Court overturned an order from the Court of Appeal. This order had frozen the assets of Neconde, Nestoil, and their main promoters over a supposed loan default. The court said the appeal court exceeded its authority by issuing an ex parte application against the two oil firms.

Judge Stephen Adah said the appeal court wrongly took charge and issued an injunction against Neconde and Nestoil when the case was not properly before it. The Supreme Court also criticized the lower court for misusing the legal process by granting a stay of proceedings at the Federal High Court in Lagos.

This lawsuit started because FBN Quest Merchant Bank and First Trustees wanted to recover debts of over $1 billion and N430 billion allegedly owed by Neconde and Nestoil, along with their main promoters, Azudialu Obiejesi and Nnenna Azudialu-Obiejesi.

To help recover the debts, the financial institutions appointed Abubakar Sulu-Gambari as receiver/manager for Nestoil and Neconde. Justice Deinde Dipeolu from the Federal High Court in Lagos later issued a Mareva injunction, freezing the companies' accounts and shares in more than 20 financial and corporate institutions. He also ordered multiple security agencies to help enforce the receivership.

The order gave the receiver/manager the right to take control of Nestoil's headquarters and other assets and manage Neconde’s interest in OML 42, the oil block it operates with NNPC Limited. The receiver took over Nestoil's head office on 22 October 2025.

With claims of favoritism and misconduct against Nestoil and Neconde, John Tsoho, the chief judge of the Federal High Court, reassigned the case to another judge. On 20 November 2025, the new judge, Justice J. Osiagor, cancelled the earlier receivership enforcement order.

FBN Quest Merchant Bank and First Trustees appealed this decision on 22 November 2025. Then, on 29 November 2025, the Court of Appeal, led by Justice Yargata Nimpar, issued a restorative injunction based on an ex parte application from the financial institutions. This order reversed Justice Osiagor's earlier decision and prevented Nestoil, Neconde, and their agents from blocking the receiver/manager until the appeal is heard.

On 12 January, the Supreme Court told all parties in the case to go back to the Court of Appeal to resolve an important procedural issue. The court stated that the appeal court needed to sort out who could represent Neconde and Nestoil in the case.

The Court of Appeal, on 23 January, disqualified Wole Olanipekun, Muiz Banire, and other lawyers appearing with them from representing Neconde and Nestoil. It ruled that the receivership of Mr Sulu-Gambari had suspended Mr Azudialu-Obiejesi’s powers.