FBNQuest Merchant Bank Limited and First Trustees Limited have asked the Court of Appeal, Lagos, to restrain Nestoil Limited, Neconde Energy Limited and two others from taking any steps to enforce the reversal of a Mareva injunction (freezing order) on their properties, citing alleged $1.01 billion asset dissipation plans by the respondents.
This is contained in a motion on notice filed by the plaintiffs’ lead counsel, Babajide Okun SAN, dated November 21, 2025.
The motion also seeks the suspension of the reversal orders handed down by the Federal High Court in Lagos, presided over by Justice Daniel Osiagor, delivered on Thursday, according to a statement by Nestoil titled “PUBLIC NOTICE: NESTOIL WINS FIRST BANK ENTITIES/PROXIES IN FEDERAL HIGH COURT.”
FBNQuest’s Motion
In his motion, Okun urged the Appeal Court to suspend the operation or effect of the trial court’s orders and to restrain the respondents pending the hearing and determination of the appellants’ appeal, initiated via a Notice of Appeal filed on November 21, 2025.
Citing the grounds of the application and accompanying affidavit, the Senior Advocate argued that the decision of the Federal High Court has been appealed, noting that the appeal raises substantial points of law that could prejudice the case if any steps are taken pursuant to the reversal orders.
The plaintiffs maintain that Nestoil is allegedly indebted to Access Bank Plc, Zenith Bank Plc, Ecobank Limited, Africa Export–Import Bank, First Bank of Nigeria Limited, First City Monument Bank, United Bank for Africa Plc, and Union Bank of Nigeria Plc (collectively referred to as “Nestoil Lenders”) to the tune of $1,012,608,386.91 and N430 billion as of September 30, 2025, with accruing interest.
In the affidavit, Babatunde Adewolu, an official of FirstTrust, deposed that Neconde, Nestoil founder Ernest Azudialu-Obiejesi, and Nnenna Obiejesi are allegedly joint and several obligors for the “humongous indebtedness” owed by Nestoil to its lenders.
The official accused the Nestoil founder of incorporating several briefcase and shell companies to allegedly “conceal and dissipate assets.”
“If the respondents are allowed to dissipate their assets, there can be no return to the status quo if this appeal succeeds.
“Furthermore, monies belonging to innocent depositors who placed their trust and resources in the Nestoil lending banks are at risk of being lost if an injunction is not granted,” the official added, stressing that the development has the potential to cripple Nigeria’s financial sector and the economy at large.
The Court of Appeal was also informed that Nestoil and another entity are allegedly under receivership, appointed by deed, and that their management is no longer in control.
The Senior Counsel urged the Court of Appeal to uphold the motion in the interest of justice.
Backstory
The latest legal development follows a reported confrontation at Nestoil’s headquarters in Lagos when officials attempted to repossess the building pursuant to a ruling delivered on November 20.
This followed a petition of bias filed by Nestoil’s Chairman, Ernest Azudialu-Obiejesi, against the initial presiding judge, Justice Deinde Dipeolu, which led to proceedings being halted and subsequently reassigned to Justice Osiagor.
The dispute originates from a Mareva injunction issued on 22 October 2025 by Justice Dipeolu, freezing Nestoil’s assets, bank accounts and shares across more than 20 Nigerian financial institutions.
The order was obtained by FBNQuest Merchant Bank Limited and First Trustees Limited—both subsidiaries of First Bank of Nigeria Limited—over an alleged debt of $1.01 billion and N430 billion owed by Nestoil, its affiliate Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi.
Court filings seen by multiple media outlets indicate that credit facilities were allegedly granted to Nestoil-linked entities under the Obijackson Group and secured by assets, shares, and interests in oil fields.
Enforcement Actions
Justice Dipeolu had also appointed Abubakar Sulu-Gambari, SAN, as receiver-manager, granting him authority to take possession of Nestoil’s head office at 41/42 Akin Adesola Street, Victoria Island, Lagos, and other specified properties.
The order further directed the Nigeria Police Force, the Nigerian Navy, and the State Security Service (SSS) to support enforcement.
Following the order, armed police officers reportedly sealed Nestoil’s headquarters in late October—an action that underscored the magnitude of the dispute and the court’s strict enforcement stance.
At the last hearing before his recusal, Justice Dipeolu informed the parties that, due to the pending petition before the Chief Judge, he would refrain from taking further action in the matter until the complaint was resolved.
Meanwhile, Nestoil filed a separate application before the Federal High Court, Abuja, seeking to set aside the Lagos Mareva order and halt enforcement by the receiver-manager, denying the institution’s debt claims.
What Is at Stake
The Nestoil–FBNQuest case is one of the largest commercial litigation matters currently before the Federal High Court, with combined liabilities exceeding N1 trillion in naira- and dollar-denominated obligations.
The outcome of the unfolding legal battle could shape how future high-stakes debt enforcement cases involving major corporate borrowers and financial institutions are adjudicated in Nigeria.
