The Supreme Court of Nigeria on Monday set aside an order of the Court of Appeal that had frozen the assets of Neconde Energy Limited, Nestoil Limited, and two others over an alleged $1.1 billion indebtedness to FBNQuest Merchant Bank Limited and First Trustees Limited.
Supreme Court Ruling
A five-member panel of the apex court, led by Justice Stephen Adah, delivered the judgment. The court held that the three-member panel of the appellate court exceeded its powers by granting an ex parte application against the appellants. Justice Adah, in the lead judgment, criticized the appellate court for assuming jurisdiction and issuing an injunction against Neconde and Nestoil when the matter was not properly before it.
Furthermore, the Supreme Court accused the appellate court of misusing the judicial process, particularly when the Court of Appeal issued a stay of proceedings at the Federal High Court in Lagos.
Background of the Dispute
The dispute originated from debt recovery proceedings initiated by lenders, including FBNQuest Merchant Bank Limited and First Trustees Limited, against Nestoil and Neconde Energy over financing arrangements tied to oil assets and operations. In October 2025, the Federal High Court in Lagos granted an ex parte Mareva injunction freezing the companies' assets, bank accounts, and shares across more than 20 financial institutions.
However, the companies challenged the order, arguing that it automatically lapsed after 14 days under the Federal High Court Civil Procedure Rules once a motion to discharge it was filed. In November 2025, Justice Daniel Osiagor ruled that the ex parte order had expired by operation of law and was no longer subsisting.
Appeal Court Decision Overturned
Justice Yargata Nimpar of the Court of Appeal, on November 29, 2025, granted an interim restorative injunction returning control of Nestoil's assets and operations to the receiver manager appointed by the banks. He ruled that all steps Nestoil took after the November 20 ruling were set aside, and the Mareva injunction continued to operate.
However, this decision of the appellate court has now been set aside by the Supreme Court, paving the way for the matter to continue at the trial court. Neconde and Nestoil remain fully in charge of their companies. Details later.
