The Court of Appeal in Lagos on Thursday adjourned a receivership case between FBNQuest Merchant Bank and First Trustees Limited, and Nestoil Limited, Neconde Energy Limited, and two others, due to controversy surrounding the legal representation of the respondents.
Presiding judge, Justice Yargata Nimpara, adjourned the matter to January 15, 2026, holding that the issue of legal representation for Nestoil Limited and Neconde Energy Limited must be resolved before the court can proceed with hearing the case on its merit.
Nairametrics previously reported that the Appeal Court had temporarily restrained Nestoil Limited, Neconde Energy Limited, and two others from interfering with the duties of a receivership manager appointed over their assets amid an alleged $1.01 billion debt claimed by FBNQuest Merchant Bank and First Trustees Limited.
The ex parte ruling was delivered by Justice Yargata Nimpara, according to a certified true copy dated November 27, 2025, while hearing on the motion on notice was fixed for December 4, 2025.
Nairametrics notes that an ex parte motion is a legal process that does not require the presence of the defence or interested parties unless the presiding judge orders otherwise.
The order followed a motion on notice by the financial institutions seeking to restrain Nestoil Limited, Neconde Energy Limited, and two others from enforcing the reversal of a Mareva injunction (freezing order) on their properties due to an alleged $1.01 billion asset dissipation plan by the respondents.
What Transpired in Court
At the hearing on Thursday, Ayoola Ajayi, SAN, announced appearance for Nestoil Limited, while Ayo Olorunfemi, SAN, appeared for the second respondent, Neconde Energy Limited.
Muiz Banire, SAN, and Wole Olanipekun, SAN—counsel for Nestoil and Neconde at the Federal High Court—also announced appearances for both firms.
Kehinde Ogunwumiju, SAN, appeared for the 4th respondent, Nnenna Obiejesi.
Babajide Koku, SAN, appeared for the appellants alongside Kunle Ogunba, SAN.
Ajayi argued that there was a dispute over who was authorised to represent both firms.
He urged the court to address the issue and provide direction on the appropriate counsel for each party.
In response, Banire maintained that his representation was not in question as he is the counsel of record from the lower court.
Olanipekun argued that since the court had not heard any application challenging his representation, he remained the recognised counsel for the second respondent.
Ogunwumiju, SAN, also maintained that his representation was uncontested.
Responding to the counsels, the judge stated that there was an obvious conflict regarding the applications for change of counsel filed on behalf of the first and second respondents.
“Those applications must be taken first to resolve the issue of legal representation before the court can proceed with any other application,” the judge said, according to The Cable.
The matter was then adjourned for the relevant parties to file formal processes in respect of the authorisation of their legal representation.
Nestoil Reacts
Reacting to the development, a source in Nestoil told Nairametrics that the firms had petitioned the Appeal Court before the National Judicial Council (NJC) against the three justices who issued the ex parte ruling, alleging that one of the Appeal Court justices had since recused himself, prompting the President of the Court of Appeal to assign another judge.
Backstory
In the ex parte motion filed by the plaintiffs’ lead counsel, Babajide Okun, SAN, on November 26, 2025, the institutions requested an interim restorative injunction to reverse steps taken by Nestoil, Neconde, and their founders or staff pursuant to a Federal High Court order (coram Osiagor J.) issued on November 20, 2025, which lifted the freezing orders on their properties pending the hearing of the appellants’ motion on notice.
The injunction was secured by FBNQuest Merchant Bank Limited and First Trustees Limited (subsidiaries of First Bank) over alleged debts owed by Nestoil, Neconde, and promoters Ernest and Nnenna Azudialu-Obiejesi.
Justice Dipeolu appointed Abubakar Sulu-Gambari, SAN, as receiver/manager to take possession of Nestoil’s head office at 41/42 Akin Adesola Street, Victoria Island, Lagos, and other assets.
Security agencies, including the police, navy, and DSS, were directed to assist enforcement, resulting in armed police sealing the headquarters in late October.
Proceedings halted after Nestoil Chairman Ernest Azudialu-Obiejesi petitioned the Chief Justice, accusing Justice Dipeolu of bias, prompting reassignment of the case to Justice Osiagor.
Nestoil is also seeking to vacate the receivership order in the Federal High Court, Abuja, while denying the alleged debt and the matter is fixed for ruling.
What’s at Stake
This is one of Nigeria’s largest commercial disputes before the Federal High Court and Court of Appeal, involving liabilities exceeding N1 trillion in naira and dollar terms.
The outcome may shape future high-stakes debt enforcement battles between major corporations and financial institutions.
