Multi-billion Dollar Debt: Nestoil Sinks Deeper in Turbulent Waters as Police seal Lagos Headquarters

Nestoil Limited, one of Nigeria’s leading provider of engineering, procurement, construction and commissioning services in the oil and gas sector has sunk deeper into turbulent waters as the Federal High Court in Lagos granted multiple orders freezing its accounts and shares in more than 20 financial institutions and other companies in Nigeria.

They include: Citibank Nigeria Limited, Central Securities and Clearing Systems PLC, Fidelity Bank PLC, Guaranty Trust Bank PLC, Globus Bank Limited, Keystone Bank Limited, Opay Limited, Polaris Bank Limited, Providus Bank Limited, Stanbic IBTC Bank Limited, Standard Chartered Bank Nigeria Limited, Sterling Bank PLC, Titan Trust Bank Limited, Unity Bank PLC, Wema Bank PLC, Gobowen Exploration and Production Limited, Hammako Consortium Limited, Krawcod Properties Limited, Santa Spring Oil and Gas Limited, Marine & Ocean Infinity Nigeria Limited and White Dove Shipping Co. Ltd.

On Tuesday, armed police officers sealed the company’s Lagos headquarters in accord with the Federal High Court order authorising First Trustees and its subsidiary, FBNQuest Merchant Bank, to take over its assets due to an alleged multibillion-dollar debt default.

The enforcement by the police was sequel to the directive issued by Justice D. I. Dipeolu of the Federal High Court, Lagos Division, on October 22, 2025, granting a Mareva injunction against Nestoil Limited and its affiliate, Neconde Energy Limited, as well as their principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

The order, certified by the court’s Deputy Chief Registrar, Longs G. Longwa, and addressed to the Deputy Inspector General of Police (Operations), instructed the police to assist court bailiffs and the appointed receiver-manager in enforcing the ruling.

The registrar’s letter to police authorities said: “Pursuant to the Order of this Honourable Court dated 22 October 2025, you are requested to kindly use your good office to assist the Bailiffs of this Court in executing the attached copy of Court Order.”

The court action stemmed from a debt claim by FBNQuest Merchant Bank Limited and First Trustees Limited against Nestoil, Neconde Energy, and their directors.

The plaintiffs had alleged that the companies and their promoters owed more than $1.01 billion and ₦430 billion as of 30 September 2025, in respect of various credit facilities.

Consequently, Justice Dipeolu granted multiple orders freezing the defendants’ bank accounts and shares across more than 20 financial and other institutions in Nigeria.

Justice Dipeolu  also authorised Abubakar Sulu-Gambari, a Senior Advocate of Nigeria, SAN, the receiver/manager appointed by the plaintiffs, to take over Nestoil’s headquarters located at 41/42 Akin Adesola Street, Victoria Island, Lagos, and other identified assets.

Apart from the order freezing Nestoil’s assets as well as those of its subsidiaries, the court also directed multiple security agencies, including the Nigeria Police Force, the Nigerian Navy, and the State Security Service (SSS), to provide protection and assist in enforcing the takeover.

The order also empowered the receiver/manager to assume control of Neconde Energy’s interests in Oil Mining Lease (OML) 42, jointly operated with the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPCL were also instructed to grant the receiver access to the oil block and cooperate in managing production and revenue flows.

The court adjourned the case to November 7, 2025 for the hearing of the substantive motion on notice.

Neither Nestoil’s Group Managing Director/Chief Executive Officer, Dr. Ernest Azzudialu-Obiejesi, nor the company, has reacted to the worrisome development.

Here are the orders granted by the court:

1. That Motion Ex-parte dated 15th October, 2025 and filed on 20* October, 2025 succeeds in part, prayers 1 and 2, 4 – 10 are granted. Prayer 3 is refused.
2. That an Order of Mareva Injunction is hereby made restraining the 1s and 2^nd Defendants, their agents and servants from operating, or dealing with the 1″ and 2d Defendants’ funds or shares in the Affected Party, banks or financial Institution within Nigeria, up to the amount claimed by the Plaintiffs/Applicants in the sum of USS1,012,608,386.91 (One Billion Twelve Million Six Hundred and Eight Thousand Three Hundred and Eighty- Six United Stated Dollars Nine One Cents) and NGN430,014,064,380.77 Four Hundred and Thirty Billion Fourteen Million Sixty-Four Thousand Three Hundred and Eighty Naira Seven- Seven kobo being the outstanding indebtedness of the Defendants as of 30^th September 2025 in respect of the 1st Defendant’s indebtedness, pending the hearing and determination of the Motion on Notice.
3. That an Order of Mareva Injunction is hereby made restraining the 3rd and 4^th Defendants, their agents and servants from operating, or dealing with their accounts, funds and shares, and in particular, associated with BVN: 22249223297 and 22182186684 in any of the Affected Parties, banks, financial institutions and related companies, up to the sums of:
4. NGN366,797,069,094.48 (Three Hundred and Sixty-Six Billion, Seven Hundred and Ninety-Seven Million, and Sixty-Nine Thousand, and Ninety- Four Naira Four Eight Kobo) and US$61,213,667.57 (Sixty-One Million, Two Hundred and Thirteen Thousand, Six Hundred and Sixty-Seven United States Dollars Five Seven Cents) being the amount personally guaranteed by the 3rd Defendant for the j$t Defendant’s indebtedness to Access Bank Ple as of 30″h September 2025.
5. $152,031,856.21 (One Hundred Fifty-Two Million Thirty-One Thousand Eight Hundred Fifty-Six Dollars and Twenty-One Cents) being the amount personally guaranteed by the 3rd and 4th Defendants for the 15 Defendant’s indebtedness to First Bank Nigeria Limited as of 30* September 2025; c. N10,430,376,065.92 (Ten Billion, Four Hundred Thirty Million,Three Hundred and Seventy-Six Thousand, and Sixty-Five Naira Ninety-Two Kobo and $213,829,487.61 (Two Hundred Thirteen Million Eight Hundred Twenty-Nine Thousand Four Hundred Eighty-Seven Dollars and Sixty-One Cents) being the amount personally guaranteed by the 3d Defendant for the 1s Defendant’s indebtedness to Zenith Bank Plc as of 30* September 2025;
6. $62,493,290.19 (Sixty-Two Million Four Hundred Ninety-Three Thousand Two Hundred Ninety Dollars and Nineteen Cents) being the amount personally guaranteed by the 3rd Defendant for the 15 Defendant’s indebtedness to Union Bank Plc as of 30th September 2025.

Totaling $485,668,638.83 (Four Hundred Eighty-Five Million Six Hundred Sixty-Eight Thousand Six Hundred Thirty-Eight Dollars and Eighty-Three Cents) and N389,926,180,446.69 (Three Hundred and Eighty-Nine Billion, Nine Hundred a n d Twenty-Six Million, One Hundred and Eighty Thousand, Four Hundred and Forty-Six Naira Sixty-Nine Kobo), pending the hearing and determination of the Motion on Notice.

4. That an order is hereby made granting leave to the Receiver/Manager to take over the 1st Defendant’s office situate at 41/42, Akin Adesola Street, Victoria Island, Lagos State and/or any other asset of the 15
   Defendant wherever it may be found within the jurisdiction of this Court, and to preserve all the assets/properties of the 1^st Defendant by virtue of the Deed of Appointment dated the 21» of August 2025, pending the hearing and determination of the Motion on Notice.
5. That an order is hereby made granting leave to the Receiver/Manager to take over the 2nd Defendant’s office situate at 41/42 Akin Adesola Street, Victoria Island, Lagos; any other asset of the 2’* Defendant
   wherever it may be found within the jurisdiction of this Court; and/or the 2^nd Defendant’s interest in OML 42 JV by virtue of the Deed of Appointment dated the 21″ of August 2025, pending the
   hearing and determination of the Motion on Notice.
6. That an order is hereby made directing the Inspector General of Police; the Assistant Inspector-General of Police in Charge of
   Lagos (Zone 2); Port Harcourt (Zone 6) and Abuja, Federal Capital Territory (Zone 7), respectively, the Commissioners of Police,
   Lagos State, Rivers State and the Federal Capital Territory, respectively, and other officers under their control, to provide security and to assist the Receiver/Manager appointed by the 2nd Plaintiff and the Bailiff of this Honourable Court for the purpose of enforcing and executing the
   Orders made herein regarding all the 15^th Defendant’s assets covered by the Al Assets Debenture and the 2nd Defendant’s assets and/or interest in OML 42 JV stated in the Deed of Charge dated 8th December 2022.
7. That an order is hereby made directing officers of the Nigerian Navy, Directorate of States Security Services, and the Marine Police to render necessary assistance to the 2nd Plaintiff and the Receiver/Manager to
   take over the 1″ Defendant’s assets and 2^nd Defendants stake in OML 42 JV Activities and all the assets herein in the exercise of his functions under the Deeds of Appointment dated 21″ August 2025.
8. That an order is hereby made directing the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPC Exploration
   and Production Limited, NNPC Upstream Investment Management Services Limited (formerly National Petroleum Investment Management Services – NAPIMS), Nigerian Petroleum Development Company Limited and Nigerian National Petroleum Company Limited to grant Mr. Abubakar Sulu-Gambari SAN, the Receiver/Manager, access to OML 42 (and OML 42 JV); cooperate with the Receiver in the exploitation, production and sale of gas and other hydrocarbons; and cooperate with the Receiver in exercise of the rights and receiving the benefits, interest, claims and proceeds of payment and receivables due from OML 42 JV, OML 42 JV Activities and OML 42 JV Contracts; all in the exercise of his functions under the Deed of Appointment dated 21» August 2025.
9. That an order is hereby made granting leave to the Receiver/Manager to publish the prescribed, statutory and procedural Notices depicting the current status of the and 2nd Defendants (now in receivership) as may be deemed fit in any Daily or Nationally circulated Newspaperin Nigeria.
10. That an order is hereby made directing and/or compelling the Affected Parties harboring the Defendants’ shares, assets, bonds, funds howsoever described, whether held directly by the Defendants or via proxy, to depose on Oath the shares, assets, investments, sums etc., standing to the credit of the Defendants in their custody within 7 days from being served with a copy of the Order of Court.
11. That the Plaintiffs/Applicants shall file a duly worded undertaking to indemnify the Defendant in the event that this order ought not to have been granted.
12. That case is adjourned to 7ih November, 2025 for hearing of the Motion on Notice.

ISSUED AT LAGOS under the seal of this court and the hand of the Presiding Judge this 22nd day of October, 2025.