The Federal High Court in Abuja has suspended its ruling on injunctive reliefs and receivership proceedings involving Nestoil Limited, eight Nigerian banks, and the African Export-Import Bank (Afreximbank), pending the outcome of a related case before the Court of Appeal.
The decision was announced on Thursday by Justice Mohammed Umar following submissions from counsel to the Nigerian banks and Afreximbank that an appeal touching on similar issues remains unresolved.
The development delays a ruling earlier fixed for January 22, 2026, and adds another layer to an already complex commercial dispute between the oil and gas firm and its lenders.
Nairametrics, which was present at the proceedings, observed that the court opted to pause its decision after hearing arguments on whether it could proceed while appellate issues subsist.
The matter centres on Nestoil’s request for injunctive relief concerning the release of its account statements and objections to receivership proceedings initiated after a Notice of Default was issued against the company.
What they are saying
At the resumed hearing, the court heard opposing submissions on whether there was any new development to warrant further delay or an immediate ruling.
The disagreement hinged on the status of proceedings at the Court of Appeal and their relevance to the Abuja case.
“While the matter was adjourned for report/ruling, there is nothing to report because the application heard at the superior court is different,” counsel to Nestoil, Victoria Bassey, told the court.
“There is something to report,” countered Victor Ogunde, SAN, counsel to the Nigerian banks and Afreximbank, insisting that the court had earlier adjourned specifically for ruling or report.
Ogunde added that Nestoil had approached the Supreme Court to suspend Court of Appeal orders, but was directed to return to the appellate court to resolve issues of legal representation and whether a company allegedly under receivership can appoint a solicitor.
Justice Mohammed Umar stated in open court: “We cannot deliver a ruling now until we hear what the Court of Appeal decides.”
Following the exchanges, the parties agreed to a shift in date, and the judge further adjourned the matter to February 18 for ruling or report.
Backstory
The dispute has its roots in receivership proceedings initiated against Nestoil Limited by its lenders, prompting the company to seek judicial intervention. Nairametrics previously reported that Nestoil approached the Federal High Court in Abuja, asking for restraining orders to halt the receivership process.
In a motion on notice dated October 28, Nestoil’s lead counsel, Mofesomo Tayo-Oyetibo, SAN, sought an interlocutory injunction pending the determination of the substantive suit.
He argued that the banks were making what he described as wrongful demands and threats against his client, despite Nestoil having allegedly substantially performed its obligations under the credit transaction agreements and underlying facility arrangements.
According to Tayo-Oyetibo, the company has repaid hundreds of millions of dollars under the agreements, a point he relied on to justify the request for injunctive reliefs.
The banks, however, challenged the competence of the suit.
In a separate motion, their counsel, Babajide Okun, SAN, urged the court to strike out the case on grounds that it constituted an abuse of court process.
He argued that the dispute involved a multiplicity of actions, noting that the same parties and subject matter were already before the Federal High Court in Lagos.
Okun further contended that Nestoil, which he maintained was under receivership, lacked the legal standing to institute the Abuja action without the consent of the appointed receiver or manager.
What you should know
The legal battle has extended beyond Abuja, with enforcement actions and appellate interventions shaping its trajectory.
Nairametrics earlier reported that armed officers of the Nigeria Police Force sealed Nestoil’s headquarters in Victoria Island, Lagos, following a Federal High Court order freezing the company’s assets, bank accounts, and shares over alleged debts of $1.01 billion and N430 billion owed to FBNQuest Merchant Bank Limited and First Trustees Limited.
Videos obtained by Nairametrics showed police officers surrounding the premises, with an inscription reading: “Possession taken by court.”
The action followed a Mareva injunction granted on October 22, 2025, by Justice D. I. Dipeolu of the Federal High Court, Lagos Division.
The order authorised the takeover of assets belonging to Nestoil Limited, its affiliate Neconde Energy Limited, and their promoters across more than 20 financial institutions.
Financial institutions were also directed to disclose, under oath, details of funds or investments linked to Nestoil and its affiliates within seven days.
That order was later reversed by another judge of the Federal High Court in Lagos, prompting FBNQuest to approach the Court of Appeal, which issued an interim injunction restraining Nestoil from interfering with the duties of the receiver or manager.
Why this matters
The case represents one of the most closely watched commercial disputes involving a major oil and gas player and several financial institutions in Nigeria.
With proceedings now effectively pending the Court of Appeal’s decision, the outcome is expected to have implications for how receivership, creditor rights, and corporate legal standing are interpreted.
Given the multiple layers of litigation and the sums involved, the dispute may ultimately find its way to the Supreme Court for a final determination.
Such a verdict could influence future financial transactions, enforcement of security interests, and the conduct of receivership proceedings within Nigeria’s commercial and financial landscape.
