The Supreme Court of Nigeria has nullified an order by the Court of Appeal that froze the assets of Neconde Energy and Nestoil Limited, along with those of their principal promoters, over an alleged multibillion-dollar debt default.
A five-member panel of the court, led by Justice Stephen Adah, ruled on Monday in Abuja that the appellate court exceeded its authority when it issued an ex parte application against the oil firms. Justice Adah stated that the Court of Appeal assumed jurisdiction and granted an injunction when the dispute was not properly before it.
The Supreme Court also criticized the lower court for misusing judicial process by granting a stay of proceedings at the Federal High Court in Lagos.
Background of the Dispute
The case stems from efforts by FBN Quest Merchant Bank and First Trustees to recover debts exceeding $1 billion and N430 billion allegedly owed by Neconde and Nestoil, as well as their promoters, Azudialu Obiejesi and Nnenna Azudialu-Obiejesi.
As part of recovery, the financial institutions appointed Abubakar Sulu-Gambari as receiver/manager over Nestoil and Neconde. Justice Deinde Dipeolu of the Federal High Court, Lagos, issued a Mareva injunction freezing the companies' accounts and shareholdings across over 20 financial and corporate institutions, directing multiple security agencies to enforce the receivership.
The receiver took possession of Nestoil's headquarters on 22 October 2025. However, amid allegations of bias, the chief judge of the Federal High Court, John Tsoho, reassigned the case to Justice J. Osiagor, who revoked the receivership-enforcement order on 20 November 2025.
FBN Quest and First Trustees appealed on 22 November 2025. On 29 November 2025, the Court of Appeal, per Justice Yargata Nimpar, issued a restorative injunction via ex parte application, reversing Justice Osiagor's decision and restraining Nestoil, Neconde, and their agents from obstructing the receiver.
On 12 January, the Supreme Court directed parties to return to the Court of Appeal to resolve a procedural issue regarding legal representation. The Court of Appeal, on 23 January, disqualified lawyers Wole Olanipekun, Muiz Banire, and others from representing Neconde and Nestoil, ruling that receivership had suspended Azudialu-Obiejesi's powers.
