FBNQuest asks Appeal Court to restrain Nestoil amid $1bn debt row

By Agnes Ekebuike Editor, Naija247news

FBNQuest Merchant Bank Limited and First Trustees Limited have approached the Court of Appeal in Lagos seeking orders to stop Nestoil Limited, Neconde Energy Limited and two others from enforcing the reversal of a Mareva injunction previously placed on their assets. The appellants allege that Nestoil and its promoters are planning to dissipate assets tied to a $1.01 billion and N430 billion debt obligation.

The motion on notice, filed by the plaintiffs’ lead counsel, Babajide Okun SAN, on November 21, 2025, also seeks a suspension of the reversal orders issued by Justice Daniel Osiagor of the Federal High Court, Lagos. This followed Nestoil’s public statement announcing its victory at the trial court, which lifted the freezing order initially granted in October.

Arguing the application, Okun urged the Court of Appeal to suspend the effect of the lower court’s ruling and restrain all respondents from taking any step that could undermine the pending appeal. He noted that a Notice of Appeal had been lodged the same day and that the issues raised contained substantial points of law that could be prejudiced if the respondents act on the reversal.

According to the plaintiffs, Nestoil is allegedly indebted to multiple financial institutions—Access Bank, Zenith Bank, Ecobank, Afreximbank, First Bank, FCMB, UBA and Union Bank—collectively referred to as “Nestoil Lenders”. Court documents indicate liabilities amounting to $1,012,608,386.91 and N430 billion as of September 30, 2025, with interest still accruing.

In an affidavit filed by FirstTrust official Babatunde Adewolu, the deponent claimed that Neconde Energy, Nestoil founder Ernest Azudialu-Obiejesi, and Nnenna Obiejesi are jointly responsible for the outstanding debt. Adewolu further alleged that the Nestoil founder incorporated multiple shell companies to conceal and dissipate assets, warning that failure to preserve the assets would render any successful appeal meaningless. He added that depositors’ funds across the lending banks could be at risk, with potential ripple effects on Nigeria’s wider financial system.

The Court of Appeal was also informed that Nestoil and a related entity are currently under receivership and that their management has been displaced by the appointed receiver-manager.

This legal escalation follows reported chaotic scenes at Nestoil’s Lagos headquarters after officials attempted to take possession of the building based on an earlier ruling. The confrontation came after Nestoil Chairman Ernest Azudialu-Obiejesi filed a petition of bias that halted Justice Deinde Dipeolu’s oversight of the matter, prompting reassignment to Justice Osiagor.

The dispute originates from a Mareva injunction issued on October 22, 2025, by Justice Dipeolu, freezing Nestoil’s bank accounts, assets, and shares across more than 20 financial institutions. The order empowered receiver-manager Abubakar Sulu-Gambari SAN to take over Nestoil’s head office in Victoria Island and other listed properties, with enforcement support from the Police, Navy and DSS. Armed officers subsequently sealed the company’s premises in late October.

Before his recusal, Justice Dipeolu maintained that he would not proceed further until the Chief Judge concluded the review of the petition against him. Meanwhile, Nestoil filed a counter-application in Abuja seeking to nullify the Lagos order, denying any outstanding debt and challenging enforcement steps by the receiver-manager.

The case, with liabilities exceeding N1 trillion across dollar and naira exposures, is one of the largest commercial litigation battles in Nigeria. Its eventual outcome is expected to influence future high-value debt enforcement actions involving major corporate borrowers and the banking sector.

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Reporting by Agnes Ekebuike Editor, Naija247news in Lagos, Nigeria.