The financial troubles of Nestoil Limited, the oil and gas services company owned by businessman Ernest Azudialu-Obiejesi, have taken a dramatic turn with the repossession of its corporate offices in Victoria Island, Lagos.
The takeover was executed by FBNQuest Merchant Bank, acting as court-appointed receiver, following a ruling of the Court of Appeal that reinstated receivership action against the company.
The appellate court granted what it described as a “restorative injunction,” effectively reversing earlier steps taken by Nestoil and its affiliates to halt the receivership process.
The decision marks a significant setback for the company, which has been locked in escalating legal battles over mounting debts.
Nestoil, together with its sister firm Neconde Energy Limited, had been placed under receivership by a consortium of lenders over a reported $2 billion debt, based on a prior order of the Federal High Court.
Although the companies had secured a separate injunction directing the receiver to suspend action pending further proceedings, the latest ruling has reinforced the authority of FBNQuest Merchant Bank to act.
Court Paper Details
Court filings show that on 26 November 2025, FBN Merchant Bank Ltd and First Trustees Ltd sought interim orders from the Court of Appeal, including the reversal of all steps taken pursuant to the 20 November Federal High Court ruling, an injunction restraining interference with the receiver’s duties, and a stay of proceedings at the lower court.
The panel, presided over by Justice Yargata Nimpar, granted the application on 28 November. This order led to the police takeover of Nestoil’s headquarters on Monday and set 4 December for hearing of the substantive motion.
The dispute traces back to 22 October 2025, when Justice D. I. Dipeolu of the Federal High Court, Lagos, issued a Mareva order authorising First Trustees and FBNQuest Merchant Bank to assume control of Nestoil’s assets.
That injunction restrained dealings relating to debts amounting to $1.01 billion and ₦430 billion as of 30 September 2025.
Additional debts personally guaranteed by Azudialu-Obiejesi were also cited, including more than ₦366.8 billion, $61.2 million, $152 million and ₦10.4 billion owed to Access Bank, FirstBank and Zenith Bank.
Nestoil and its promoters later approached the Federal High Court seeking to set aside the Mareva order, but the appellate court’s latest decision has reinforced the receiver’s authority pending determination of the substantive appeal.
The repossession underscores the scale of financial strain facing one of Nigeria’s most prominent indigenous oil and gas service companies.
The case highlights the growing risks in the sector, where heavy borrowing, volatile oil prices, and regulatory pressures have left several firms vulnerable to debt crises and creditor action.
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