The financial troubles facing Nestoil Limited, owned by businessman Ernest Azudialu-Obiejesi, has deepened with the company’s corporate offices in Victoria Island, Lagos, repossessed by a court-appointed receiver following a ruling of the Court of Appeal.
The repossession was carried out by FBNQuest Merchant Bank, acting as receiver, after the appellate court granted a “restorative injunction” reversing earlier steps taken by Nestoil and its affiliates to halt receivership action.
The decision marks a significant setback for the company amid escalating legal battles over mounting debts.
Nestoil and its sister firm, Neconde Energy Limited, were placed under receivership by a consortium of lenders over a reported $2 billion debt, based on a prior order of the Federal High Court.
The companies had, however, secured a separate injunction directing the receiver to suspend action pending further proceedings.
In an ex-parte application filed on 26 November 2025, FBN Merchant Bank Ltd and First Trustees Ltd sought interim orders from the Court of Appeal, including the reversal of all steps taken pursuant to the 20 November Federal High Court ruling, an injunction restraining interference with the receiver’s duties, and a stay of proceedings at the lower court.
The Court of Appeal panel in Lagos, presided over by Justice Yargata Nimpar, granted the application.
The order, dated 28 November, led to the police takeover of Nestoil’s headquarters on Monday and fixed 4 December for hearing of the substantive motion.
Earlier, on 22 October 2025, Justice D. I. Dipeolu of the Federal High Court, Lagos, had issued a Mareva order authorising First Trustees and FBNQuest Merchant Bank to assume control of Nestoil’s assets.
The injunction restrained dealings relating to debts amounting to $1.01 billion and ₦430 billion as of 30 September 2025.
Additional debts personally guaranteed by Azudialu-Obiejesi were also cited, including more than ₦366.8 billion, $61.2 million, $152 million and ₦10.4 billion owed to Access Bank, FirstBank and Zenith Bank.
Nestoil and its promoters later approached the Federal High Court seeking to set aside the Mareva order, but the latest appellate court decision has reinforced the receiver’s authority pending determination of the substantive appeal.
