The financial troubles plaguing Nestoil Limited intensified on Monday after its corporate headquarters in Victoria Island, Lagos, was taken over by a court-appointed receiver acting on the authority of FBNQuest Merchant Bank. The development follows a fresh ruling from the Court of Appeal in Lagos, signalling a major escalation in the years-long battle between the oil and gas services group and a consortium of creditors.
Security operatives were seen on Monday enforcing the takeover order at the company’s offices, a move backed by a “restorative injunction” issued by the appellate court. The decision effectively reinstated the receivership earlier granted by a Federal High Court before it was temporarily halted by another high court order obtained by Nestoil and its sister company, Neconde Energy Limited.
The dispute traces back to Nestoil’s mounting debt profile, reportedly exceeding $2 billion, owed to multiple lenders. First Trustees and FBNQuest Merchant Bank had previously secured a Mareva injunction on October 22, 2025, permitting them to freeze the company’s assets and move in to protect their interest. That order, granted by Justice D.I. Dipeolu, also restricted any transactions involving more than $1 billion and over N430 billion said to be outstanding as of September 30.
Additional facilities personally guaranteed by the company’s founder, Dr. Ernest Azudialu-Obiejesi, were also listed by the court, including obligations to Access Bank, First Bank, and Zenith Bank running into hundreds of billions of naira and tens of millions of dollars.
But in a twist late last month, Nestoil and Neconde approached a separate division of the Federal High Court seeking reliefs to stop the enforcement of the Mareva injunction. That ruling briefly stalled the receiver, prompting FBNQuest Merchant Bank and First Trustees to head to the Court of Appeal.
In their ex-parte application filed on November 26, the appellants asked the appellate court to reverse all actions taken by Nestoil under the suspended enforcement and to restrain the oil company, its agents, and affiliates from obstructing the receiver-manager’s work.
Justice Yargata Nimpar, presiding over the appeal, agreed with the applicants and granted the restorative injunction on November 28. The court also stayed further proceedings at the lower court and fixed December 4, 2025, for hearing of the substantive motion.
With Monday’s enforcement, the long-running commercial dispute has entered a new phase, raising fresh questions about the future of one of Nigeria’s most prominent indigenous oil and gas contractors. The company has yet to issue an official statement following the repossession of its headquarters.