Nestoil Secures Federal High Court Victory, Yet Police Defy Order, Keeping Receiver At Company HQ

The Federal High Court in Lagos has vacated the contentious Mareva injunction that previously froze Nestoil Limited’s assets over an alleged $1 billion debt owed to a consortium of creditor banks. The ruling, delivered on Thursday, November 20, 2025, by Justice Daniel Osiagor, restores full access and control to Nestoil, its affiliate Neconde Energy Limited, and their promoters, Dr. Ernest Azudialu-Obiejesi and Mrs. Nnenna Obiejesi.

Despite the clear court order vacating the injunction, sources told our correspondent that the Lagos State Commissioner of Police has refused to vacate Nestoil’s headquarters, where police officers reportedly remain stationed. Insiders allege that the Commissioner’s inaction is linked to a personal relationship with the appointed receiver, raising concerns about conflict of interest, selective enforcement of court orders, and sending a negative signal to investors. A source familiar with the situation said the continued police presence is “sending a dangerous signal to investors who expect the rule of law to be respected.” Efforts to reach the Lagos Police Command for comment were unsuccessful, as calls and messages were not returned.

The now-vacated freezing order, granted ex parte by Justice Dehinde Dipeolu on October 22, 2025, had given wide-ranging powers to over 20 creditor banks led by FBNQuest Merchant Bank Limited and First Trustees Limited, including authority to appoint receivers and take control of Nestoil’s assets across multiple banks. But Justice Osiagor held that the injunction expired automatically on November 14, 2025, pursuant to Order 26 Rule 10(1) and (3) of the Federal High Court Civil Procedure Rules, which stipulates that an ex parte order lapses 14 days after a motion challenging it is filed. Since Nestoil and its co-defendants filed their motion on October 30, 2025, the order became “spent” by mid-November.

“The ex parte order is no longer subsisting,” Justice Osiagor held. “It has elapsed by operation of law. Any arguments tied to that order are now moot or academic.”

At the hearing, Babajide Koku, SAN, representing the plaintiffs, urged the court to stay proceedings pending appeal against Justice Dipeolu’s earlier recusal, noting that the appeal had already been transmitted to the Court of Appeal. But Dr. Muiz Banire, SAN, argued that a notice of appeal does not halt proceedings. Chief Wole Olanipekun, SAN, representing Neconde, added that under Section 22(1) of the Federal High Court Act, administrative transfers by the Chief Judge are not appealable and that the case must restart de novo. Olanipekun warned against the indiscriminate granting of Mareva injunctions that could “suffocate businesses and erode years of investment,” stressing that such emergency orders are temporary and must not be weaponized.

SANs Chinonye Obiagwu and Kehinde Ogunwumiju, representing the Obiejesis, supported these arguments, insisting that the ex parte order clearly expired by November 14. Ogunwumiju added that its continued enforcement violated the constitutional right to a fair hearing under Section 36(1).

The courtroom also featured multiple parties seeking joinder, including Glencore Energy UK, Fidelity Bank, Maitus Commercial Bank, and the African Finance Corporation. M. Abubakar Sulu-Gambari, the receiver-manager earlier appointed over Nestoil’s assets, was represented by M.B. Ganiyu, while counsel Amach Ogie appeared for assets charged by Neconde. After extensive arguments, the court adjourned the matter to November 25, 2025, for the hearing of the joinder motion, and December 12, 2025, for additional applications.

Court Vacates Mareva $1bn Injunction on Nestoil Assets, But Lagos @PoliceNG Refuse to Vacate Headquarters, Raising Investor Concerns pic.twitter.com/XmwSrp5Fyd

— The Nigeria Lawyer (@Nigerialawyers) November 21, 2025

The dispute began when creditor banks filed a $1 billion debt recovery suit on October 20, 2025, leading to the sweeping ex parte order issued two days later. The injunction covered assets in more than 20 financial institutions, including Citibank Nigeria, and authorized receivership actions that Nestoil described as “business-suffocating.” Justice Dipeolu later recused himself from the case on November 7, prompting a transfer to Justice Osiagor.

In a puzzling development, a letter dated November 20, 2025, emerged from the Federal High Court requesting police assistance in enforcing the same order that Justice Osiagor vacated that morning. The letter, signed by Deputy Chief Registrar Longs G. Longwa and addressed to the Lagos Commissioner of Police, was stamped as received that same afternoon. Legal experts believe the letter may have been prepared earlier or transmitted due to administrative lag, further deepening confusion around enforcement.

The continued presence of police officers at Nestoil’s headquarters, despite the court’s explicit ruling, has raised concerns among legal practitioners and industry stakeholders about the sanctity of court orders in Nigeria’s business environment.

“This is the type of conduct that scares investors away,” a senior lawyer familiar with the case said. “When court orders are not obeyed, rule of law becomes a casualty.”

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