FRESH: $1 Billion And N430 Billion Debt Crisis As Banks Take Over Nestoil, Seal Lagos Office
Armed officers of the Nigeria Police Force (NPF) on Tuesday sealed the headquarters of Nestoil Limited in Victoria Island, Lagos.
The action followed a Federal High Court order that froze the company’s assets, bank accounts, and shares over an alleged debt of $1.01 billion and N430 billion owed to FBNQuest Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank of Nigeria Limited, according to a report by Premium Times.
Videos seen by TGM showed police personnel surrounding the company’s premises, with a marking on the wall reading “Possession taken by court.”
The enforcement followed a Mareva injunction granted by Justice D. I. Dipeolu of the Federal High Court, Lagos Division, on October 22, 2025, authorising the takeover of assets belonging to Nestoil Limited, its affiliate Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi, across more than 20 financial institutions in Nigeria.
Breakdown of the debt and court order
Court filings showed that the defendants’ total indebtedness stood at $1,012,608,386.91 and N430,014,064,380.77 as of September 30, 2025. The credit facilities were extended to Nestoil Limited, Neconde Energy Limited, and their related entities under the Obijackson Group, secured by assets, shares, and oil field interests.
Justice Dipeolu appointed Abubakar Sulu-Gambari (SAN) as receiver-manager, authorising him to take over Nestoil’s offices at 41/42 Akin Adesola Street, Victoria Island, and any other identified assets within Nigeria.
The order also directed security agencies, including the Nigeria Police Force, Nigerian Navy, and State Security Service (SSS), to assist in enforcing the takeover and securing the company’s premises.
Further enforcement and next hearing
The injunction empowered the receiver to assume control of Neconde Energy’s stake 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 instructed to grant the receiver access to manage production and revenue flows from the oil block.
The court also directed all affected financial institutions to disclose, under oath, details of funds or investments belonging to Nestoil and its affiliates within seven days of being served the order.
The case was adjourned to November 7, 2025, for the hearing of the substantive motion on notice.
