Nestoil Lenders have issued a statement to correct false reports concerning the Supreme Court judgment delivered on June 1, 2026. The lenders emphasize that the ruling does not absolve Nestoil and Neconde of their substantial indebtedness.
Supreme Court Decision Clarified
The Supreme Court's decision was a pyrrhic victory for Nestoil and Neconde, relating only to interim preservative orders granted by the Court of Appeal. Those orders had frozen the accounts of Ernest Azudualu-Obiejesi and Nnenna Obiejesi and protected the Receiver/Manager. The Supreme Court set aside those orders but did not remove the Receiver/Manager, nor did it declare that Nestoil is not indebted to the lenders.
Substantial Debt Remains
The Supreme Court simply directed that the parties return to the lower court to address the substantive issues of Nestoil's massive debt, which currently stands at US$1,084,157,611.20 and NGN469,426,076,115.87.
Background of the Loan Facilities
Prior to court action, Nestoil obtained several bilateral loan facilities from eight lenders dating back to 2010 and repeatedly defaulted on repayment obligations. Nestoil proposed restructuring the loans into a global club to ease administration, and lenders agreed in good faith. However, Nestoil has again defaulted on repayments since the restructuring became effective in 2023.
Despite multiple demand letters, Nestoil ignored its repayment obligations, which now amount to US$240,512,240.98 and NGN141,205,803,653.61. Evidence available to lenders showed that Nestoil had been diverting funds meant for repayment to other companies owned or controlled by Nestoil's principals.
Legal Actions Taken
Lenders exercised their contractual rights to declare the entire facility due and payable. They obtained interim preservative orders from the Federal High Court to prevent further diversion of funds. The Federal High Court later ruled that the interim order had lapsed. Nestoil then changed its corporate structure to avoid recovery actions. Lenders appealed to the Court of Appeal, which restored the preservative orders pending a hearing. Nestoil appealed to the Supreme Court, which ruled that the preservative orders had lapsed and that parties should address the substantive debt at the lower court.
Lenders Vow to Recover Every Penny
Nestoil Lenders assure the public, depositors, and investors that they will leave no stone unturned in recovering the sums owed. They warn that borrowers can no longer treat shareholders' and depositors' funds with impunity. Recovery actions have only just begun, and every penny owed will be recovered and repaid to the lenders committed to building the economy.
