Neconde Energy has asked the Federal High Court in Abuja to restrain the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) from allegedly approving to banks the disruption and interference of operations in the Nigerian onshore Oil Mining Lease (OML) 42 based on an alleged loan.
The request was disclosed in a suit filed by Neconde, White Dove Shipping Company Limited, and four other plaintiffs against the NUPRC, four commercial banks, African Import-Export Bank (Afreximbank), and three other companies.
A key issue before the court, presided over by Justice Mohammed Umar, is whether the NUPRC can, via its letter dated October 15, 2025, with Reference No. NUPRC/LD/CPL/2839/Vol.2/2025/94, allow agents of any charge holder to take over or disrupt the operations of assets in the OML 42 Joint Venture—of which the Federal Government of Nigeria holds a 55% stake and is the operator—“when the assets covered by the first charge held by the 2nd–9th defendants have not crystallised and are still running.”
A first charge holder is a lender with the highest priority claim on a borrower’s asset following a loan agreement.
Neconde’s Contention
In processes filed by Mohammed Diri (SAN) and Chino Obiagwu (SAN) seen by Nairametrics, the plaintiffs sought a perpetual injunction restraining the NUPRC and the respective banks from taking possession of Neconde’s assets on the basis of any credit facilities “under the first charge or any other charge, insofar as the charge on the facilities has not crystallised.”
They contended that the NUPRC’s letter was issued in error, as the facility between Neconde and any of the banks in this suit has allegedly not crystallised and remains ongoing.
With regard to Nestoil lenders—namely Access Bank, Zenith Bank, UBA, Ecobank, FCMB, Fidelity Bank, African Import-Export Bank, and First Bank—the lawyers submitted that they do not have enforcement powers over Neconde “because their charge over Neconde is subordinate, inchoate, lower in priority, and has not crystallised.”
The plaintiffs further alleged that the banks have threatened to seal, take over, possess, and dispose of their properties based on Nestoil’s liabilities to them as lenders, necessitating the court’s intervention.
What We Know So Far
Nairametrics gathered that the matter was scheduled for a hearing last Friday.
However, the court did not sit, even though the names of the counsel for both the plaintiffs—Barrister Matthew Onoja—and the respondents were listed on the court’s cause list.
- The matter has now been adjourned to December 4, 2025, for hearing.
- While the respondents’ formal legal response was not available at press time, the dispute is believed to be connected to various multi-million naira loan cases involving FBNQuest, Nestoil, Neconde, and others.
- According to a letter addressed to the Inspector-General of Police and seen by Nairametrics, Abubakar Sulu-Gambari (SAN) identified himself as the appointed Receiver/Manager over the entire undertakings, stock, goodwill, plant and machinery, and movable and immovable assets of Neconde Energy Limited in OML 42 following a Federal High Court Lagos ruling of October 22, 2025.
- However, on November 20, 2025, another judge at the Federal High Court set aside the earlier ex parte Mareva orders granted on October 22, 2025.
- FBNQuest Merchant Bank Limited and First Trustees Limited subsequently approached the Court of Appeal in Lagos, seeking orders restraining Nestoil Limited, Neconde Energy Limited, and two others from taking 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.
- All the aforementioned matters are still pending.
- Industry stakeholders are closely monitoring the legal developments between the oil company and commercial banks, as the court’s final verdict may serve as a template for future high-profile multi-million naira loan disputes.
What to Know
Neconde Energy Limited was incorporated in November 2010 as a private oil and gas company and began full operations in late 2011 following the joint venture acquisition of OML 42 from Shell Petroleum Development Company (SPDC).
Neconde owns a 45% stake, while the Nigerian Petroleum Development Company (NPDC) owns 55%.
Neconde is controlled by Nestoil Limited, a subsidiary of Obijackson Group, owned by Ernest Azudialu.
