The Supreme Court of Nigeria has canceled an order from the Court of Appeal that froze the assets of Neconde Energy and Nestoil Limited. This also includes the assets of their main promoters due to a claimed multibillion-dollar debt default.
A five-member panel of the Supreme Court ruled on Monday in Abuja. They decided that the appeal court went beyond its powers when it issued an ex parte application against the oil companies.
Stephen Adah, who is the presiding judge, explained that the appellate court took on jurisdiction and granted an injunction against Neconde and Nestoil without the case being properly before them. The Supreme Court criticized the lower court for misusing the judicial process by granting a stay of proceedings at the Federal High Court in Lagos.
Background
This dispute began when FBN Quest Merchant Bank and First Trustees tried to recover debts over $1 billion and N430 billion that Neconde and Nestoil owed. This also includes their main promoters, Azudialu Obiejesi and Nnenna Azudialu-Obiejesi.
To help recover the money, the banks appointed Abubakar Sulu-Gambari as receiver/manager for Nestoil and Neconde. Justice Deinde Dipeolu of the Federal High Court in Lagos later issued a Mareva injunction. This injunction froze the companies' accounts and shareholdings across more than 20 financial and corporate institutions.
Several security agencies were also ordered to help enforce the receivership. The order allowed the receiver/manager to take control of Nestoil’s headquarters and other assets. It also gave him control over Neconde’s interest in OML 42, the oil block they operate with NNPC Limited.
The receiver took over Nestoil’s head office on 22 October 2025. Amid claims of bias and misconduct from Nestoil and Neconde, John Tsoho, the chief judge of the Federal High Court, moved the case to another judge.
On 20 November 2025, the new judge, Justice J. Osiagor, canceled the earlier order that enforced the receivership. FBN Quest Merchant Bank and First Trustees then appealed this decision on 22 November 2025.
On 29 November 2025, the Court of Appeal, in a ruling by Justice Yargata Nimpar, issued a new injunction based on the ex parte application from the financial institutions. This order reversed Justice Osiagor’s decision and stopped Nestoil, Neconde, and their agents from blocking the receiver/manager until the appeal was heard.
On 12 January, the Supreme Court told all parties in the case to go back to the Court of Appeal to solve an important procedural issue. They stated that the lower court needed to sort out the legal representation in the case.
The Court of Appeal, on 23 January, disqualified Wole Olanipekun, Muiz Banire, and other lawyers representing Neconde and Nestoil. They ruled that the receivership of Mr Sulu-Gambari had taken away Mr Azudialu-Obiejesi’s powers.
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