Why did Nigerian banks take over Nestoil? Discover the shocking details behind the $1 billion debt crisis, court orders, and asset freezes affecting one of Nigeria’s top oil companies.
… Court Places Nestoil Under Receivership, Freezes Assets of Founder and Affiliates
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In what has become one of Nigeria’s biggest corporate debt crises in recent years, Nigerian banks have officially taken over Nestoil Limited, a major player in the oil and gas sector, over an alleged $1 billion debt, prompting the sealing of its corporate headquarters by police in Victoria Island, Lagos.
The dramatic takeover followed a ruling by Justice D. I. Dipeolu of the Federal High Court, Lagos, who on October 22, 2025, granted a Mareva injunction in favor of First Trustees and FBNQuest Merchant Bank, authorizing the seizure of Nestoil’s assets pending the determination of the substantive case.
The court order extends beyond Nestoil to include its affiliate, Neconde Energy Limited, as well as its promoters Ernest Azudialu-Obiejesi and Nnenna Obiejesi, whose personal assets are now under judicial scrutiny.
According to court documents, Justice Dipeolu also directed over a dozen Nigerian banks and financial institutions to freeze all accounts and assets linked to the defendants. These include Citibank, Fidelity Bank, GTBank, Globus Bank, Keystone Bank, Opay, Polaris Bank, Providus, Stanbic IBTC, Standard Chartered, Sterling Bank, Titan Trust, Unity Bank, and Wema Bank, among others.
The total debt in contention stands at $1,012,608,386.91 and ₦430,014,064,380.77, with additional personal guarantees by Azudialu-Obiejesi amounting to ₦366.8 billion, $61.2 million, $152 million, and ₦10.4 billion, owed to Access Bank, First Bank, and Zenith Bank respectively.
The court order effectively restrains all dealings involving the listed funds until the case is resolved, marking a major shake-up in Nigeria’s oil and financial sectors. The case is expected to return to court next month for hearing on the substantive matter.
Analysts describe the situation as a warning signal to highly leveraged corporations, as banks tighten controls to recover non-performing loans in the face of growing financial instability.
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