Court orders asset takeover as Nestoil faces $1bn debt crisis

Court orders asset takeover as Nestoil faces $1bn debt crisis

The Federal High Court in Lagos has ordered the takeover of assets belonging to Nestoil Limited and its affiliates, following a receivership action initiated by a consortium of lenders over a reported debt exceeding $1 billion.

Justice D. I. Dipeolu, who presided over the matter, granted a Mareva injunction on October 22, 2025, authorising First Trustees and its subsidiary, FBNQuest Merchant Bank, to assume control of the company’s assets pending the determination of the substantive suit in November.

The court restrained dealings in funds amounting to $1,012,608,386.91 and ₦430,014,064,380.77, which represent the total indebtedness as of September 30, 2025. Additional liabilities guaranteed by Nestoil’s principal promoter, Ernest Azudialu-Obiejesi, were also listed, including ₦366.8 billion, $61.2 million, $152 million, and ₦10.4 billion.

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The injunction affects Nestoil Limited, its affiliate Neconde Energy Limited, and the promoters, Ernest and Nnenna Obiejesi. Following the court order, police officers sealed the company’s corporate headquarters in Lagos.

In a statement issued in response, Nestoil Group described the development as a commercial matter currently before the courts, adding that it is being addressed through appropriate legal and regulatory channels.

“The Group continues to cooperate fully with all relevant authorities and financial partners to resolve any outstanding matters in a transparent and responsible manner,” the statement read.

“Constructive discussions are ongoing, and we remain confident that these engagements will result in a fair and lasting resolution.”

The company assured stakeholders that its operations remain unaffected, stating that all subsidiaries and projects in the oil, gas, power, and infrastructure sectors are continuing without disruption.

“Proactive measures have been implemented to protect our workforce, sustain operations, and uphold our obligations to clients and partners,” the statement added.

Court orders asset takeover as Nestoil faces $1bn debt crisis