The corporate headquarters of Nestoil Limited, one of Nigeria’s largest indigenous oil and gas companies, was repossessed on Monday following a Court of Appeal ruling that reinstated the company’s receivership over an alleged debt exceeding $2 billion.
Armed police officers arrived at 41/42 Akin Adesola Street, Victoria Island, Lagos, early in the morning, sealing the multi-story building and marking it as repossessed.
The enforcement followed a “restorative injunction” issued by Justice Yargata B. Nimpar of the Court of Appeal, Lagos Division, restoring Abubakar Sulu-Gambari (SAN) as the court-appointed receiver and manager for Nestoil and its affiliate, Neconde Energy Limited.
Legal back-and-forth
The case has seen a series of rapid and dramatic legal reversals. It began on October 22, 2025, when Justice Deinde Dipeolu of the Federal High Court, Lagos, issued a Mareva injunction freezing Nestoil’s assets, as well as those of Neconde Energy and the principal promoters, Ernest Azudialu-Obiejesi and his wife, Nnenna Obiejesi. The order placed the companies under receivership and authorized Sulu-Gambari to take full control of their operations.
On November 20, the tide appeared to turn in favor of Nestoil. Justice J. Osiagor of the Federal High Court vacated the Mareva injunction, effectively nullifying the receivership and unfreezing the companies’ assets. Nestoil argued that the original injunction was overly broad and disruptive to ongoing operations.
Yet the reprieve was short-lived. On November 22, a consortium of lenders, spearheaded by FBN Quest Merchant Bank Limited and First Trustees Limited, filed an appeal, requesting that the Court of Appeal suspend the effect of Justice Osiagor’s ruling.
On Friday, the appellate court granted the request, issuing an injunction that prevents Nestoil from interfering with the receiver’s duties, reinstating Sulu-Gambari’s authority.
Alleged debt exceeds $2 billion
The consortium of lenders claims that Nestoil, Neconde, and their promoters owe more than $1.01 billion and ₦430 billion under multiple credit facilities as of September 30, 2025. Personal guarantees by Ernest Azudialu-Obiejesi reportedly exceed ₦366.8 billion, with substantial amounts owed to Access Bank, First Bank, and Zenith Bank.
The October 22 court order had frozen assets held across more than 20 financial institutions, including Citibank Nigeria Limited, Guaranty Trust Bank PLC, Globus Bank Limited, Keystone Bank Limited, and Sterling Bank PLC. This effectively immobilized both corporate and personal holdings of the companies’ promoters.
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Key figures, corporate history
Ernest Azudialu-Obiejesi, born April 17, 1960, in Okija, Anambra State, founded Nestoil in 1991 after beginning his career with Obijackson West Africa Limited in the early 1980s.
A University of Benin accounting graduate, Azudialu-Obiejesi expanded Nestoil into a leading indigenous Engineering, Procurement, Construction, and Commissioning,EPCC, company in Nigeria’s oil and gas sector.
Today, Nestoil employs over 3,000 staff and operates a 59-hectare facility in Abuloma, Port Harcourt.
The company has executed major pipeline construction projects, offshore operations, and pressure vessel manufacturing contracts, cementing its reputation as a critical player in Nigeria’s oil infrastructure development.
Abubakar Sulu-Gambari (SAN), the court-appointed receiver, now has authority over Nestoil’s Lagos headquarters and Neconde Energy’s interest in Oil Mining Lease (OML) 42. This block, operated jointly with the Nigerian National Petroleum Company Limited,NNPC Limited, is considered strategically important for oil production and revenue generation.
Strategic assets under receiver control
The receivership covers both corporate headquarters and operational assets, including Neconde Energy’s substantial stake in OML 42.
The court has instructed the Nigerian Upstream Petroleum Regulatory Commission and NNPC Limited to grant Sulu-Gambari full access to production operations, revenue streams, and day-to-day management of the oil block.
Security agencies, including the Nigeria Police Force, Nigerian Navy, and the State Security Service, have been directed to assist in enforcing the receivership, highlighting the scale and sensitivity of the debt recovery operation.
Next steps
The Court of Appeal has scheduled December 4, 2025, for the hearing of the substantive motion, meaning the current enforcement is temporary. Further proceedings at the Federal High Court have been stayed, ensuring that the appellate process centralizes control over the dispute.
The appellants argued that allowing lower court proceedings to continue could render the appellate court’s decision meaningless. As a result, the appellate court’s order is currently the final operative direction pending the substantive hearing.
Nestoil’s case underscores the growing challenges facing Nigeria’s indigenous oil and gas operators in managing large-scale debt. With obligations exceeding $2 billion, the case raises questions about financial sustainability, risk management, and corporate governance in local energy companies.
The unfolding legal drama also highlights the complexity of Nigeria’s judicial system, where courts have issued opposing decisions on the same facts, raising concerns about consistency and predictability for businesses operating in the country.
For now, creditors maintain control over Nestoil’s key assets, while the future of one of Nigeria’s prominent homegrown oil companies remains in the hands of the Court of Appeal. The outcome of the December 4 hearing could set a significant precedent for debt recovery and corporate receivership cases in Nigeria’s oil and gas sector.
Further updates will follow as the December 4 hearing approaches.
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