Following the court order that placed Nestoil under receivership over a $1 billion debt, the oil and gas company has broken its silence — assuring stakeholders that it remains financially strong and operationally stable. Read full details inside.
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Oil and gas giant Nestoil Limited has reacted to the sealing of its corporate headquarters in Victoria Island, Lagos, following a court order that placed the company under receivership over an alleged $1 billion debt.
The Federal High Court in Lagos, presided over by Justice D. I. Dipeolu, had on October 22, 2025, issued a Mareva injunction authorizing First Trustees and FBNQuest Merchant Bank to take over the company’s assets pending the determination of a substantive debt recovery case.
The ruling extended to Nestoil’s affiliate, Neconde Energy Limited, and its promoters — Ernest Azudialu-Obiejesi and Nnenna Obiejesi — whose personal and corporate assets are now frozen under judicial order.
In compliance with the injunction, more than a dozen Nigerian banks, including Access Bank, GTBank, Zenith Bank, Stanbic IBTC, Citibank, Fidelity Bank, Wema Bank, Unity Bank, and others, were directed to freeze all accounts and assets linked to Nestoil and its affiliates.
The total amount in dispute stands at $1,012,608,386.91 and ₦430,014,064,380.77, with additional personal guarantees by Mr. Azudialu-Obiejesi amounting to billions of naira and several millions of dollars.
The development prompted the Nigeria Police Force to seal off Nestoil’s headquarters in Lagos on Monday, October 28, 2025 — an action that sparked widespread reactions across the oil and financial sectors.
In an official statement released later that evening, Nestoil Group acknowledged awareness of the reports but described the matter as a commercial issue currently before the courts, assuring stakeholders that it is being handled 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.”
Nestoil emphasized that despite the legal challenges, its operations across the oil, gas, power, and infrastructure sectors remain fully functional, with measures in place to protect staff and clients.
The company further highlighted its 30-year legacy of integrity, resilience, and professionalism, reaffirming its “commitment to transparency and respect for the rule of law.”
Financial experts have described the case as one of Nigeria’s most significant corporate debt disputes in recent years, warning that it could have far-reaching implications for credit risk management within the banking sector.
The case is expected to return to court in November for hearing on the substantive matter, even as both parties maintain their positions.
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