Court Of Appeal Freezes Moves To Reverse Mareva Injunction On Nestoil’s Assets In $1.01bn Debt Case Ahead Of December 4 Hearing

The Court of Appeal in Lagos has issued an ex parte order temporarily restraining Nestoil Limited, Neconde Energy Limited, and two other entities from interfering with the duties of a court-appointed receivership manager over their assets, in a bid to preserve the status quo in one of Nigeria’s most high-stakes commercial disputes. The order follows allegations that the companies owe a staggering $1.01 billion to a consortium of lenders led by FBNQuest Merchant Bank and First Trustees Limited.

Delivered by Justice Yargabta Nimpa on November 27, 2025, the order freezes any attempts by the respondents to reverse a prior Mareva injunction (freezing order) on their properties. The interim measure aims to prevent alleged plans to dissipate assets worth over $1 billion, as argued by the plaintiffs.

The ex parte application filed without notice to the opposing side was brought by FBNQuest and First Trustees on November 26, 2025, through lead counsel Babajide Okun SAN. It sought urgent relief following a Federal High Court decision on November 20, 2025 (presided over by Justice Osiagor), which had lifted the asset freeze pending further hearings.

In granting the prayers as requested, Justice Nimpa ordered:

• Restraint on Interference: Nestoil, Neconde, and their agents, affiliates, and privies are barred from disrupting the receiver/manager’s operations until the motion on notice is heard.
• Stay of Proceedings: All further actions in the lower court are suspended pending the appeal.
• Hearing Date: The court has scheduled December 4, 2025, for the full hearing and directed immediate service of the order on the respondents.

After arguments from Okun SAN and Victor Ogude SAN representing the plaintiffs, the judge emphasized that the order would hold until the substantive motion is determined, in the interest of justice.

As of this report, Nestoil has not issued an official statement on the development.

The underlying dispute revolves around an alleged indebtedness of $1,012,608,386.91 plus N430 billion (as of September 30, 2025, with accruing interest) owed by Nestoil to a group of eight major Nigerian banks: Access Bank Plc, Zenith Bank Plc, Ecobank Limited, Africa Export-Import Bank, First Bank of Nigeria Limited, First City Monument Bank, United Bank for Africa Plc, and Union Bank of Nigeria Plc (collectively, the “Nestoil Lenders”).

In a supporting affidavit, First Trustees’ official Babatunde Adewolu alleged that Neconde Energy Limited, Nestoil founder Ernest Azudialu-Obiejesi, and his wife Nnenna Obiejesi are joint obligors for the debt. He accused Azudialu-Obiejesi of using shell companies to hide and siphon assets, warning that allowing reversals of the freeze could irreparably harm the lenders if the appeal succeeds.

Okun SAN further argued in the motion on notice (filed November 21, 2025) that the Federal High Court’s ruling raises critical legal issues, including potential prejudice to the plaintiffs. He noted that Nestoil and related entities are already under receivership by deed, stripping their management of control, and urged the appellate court to intervene to safeguard the process.

The saga began on October 22, 2025, when Justice Deinde Dipeolu of the Federal High Court granted a Mareva injunction freezing Nestoil’s assets, bank accounts, and shares across more than 20 institutions. FBNQuest and First Trustees both subsidiaries of First Bank of Nigeria secured the order over the disputed debt involving Nestoil, Neconde, and the Obiejesis.

Justice Dipeolu appointed Abubakar Sulu-Gambari SAN as receiver/manager, tasking him with taking control of Nestoil’s headquarters at 41/42 Akin Adesola Street, Victoria Island, Lagos, and other assets. To enforce this, security agencies including the police, navy, and State Security Service (SSS) were mobilized, resulting in armed officers sealing the premises in late October.

Tensions escalated when Nestoil Chairman Ernest Azudialu-Obiejesi petitioned the Chief Justice of Nigeria, alleging bias by Justice Dipeolu. The case was reassigned to Justice Osiagor, who later vacated the freezing order on November 20, 2025 prompting the urgent appeal.

Nestoil is separately challenging the receivership in the Federal High Court in Abuja, where it denies the debt claims outright.

The post Court Of Appeal Freezes Moves To Reverse Mareva Injunction On Nestoil’s Assets In $1.01bn Debt Case Ahead Of December 4 Hearing appeared first on TheNigeriaLawyer.