The Federal High Court in Lagos, presided over by Justice Daniel Osiagor, has reportedly reversed a Mareva injunction (freezing order) in an alleged $1.01 billion debt recovery suit instituted against oil and gas company Nestoil Limited by FBNQuest Merchant Bank Limited and others.
The ruling was delivered on Thursday, according to a statement by Nestoil titled “PUBLIC NOTICE: NESTOIL WINS FIRST BANK ENTITIES/PROXIES IN FEDERAL HIGH COURT.”
The development follows a petition of bias filed against the initial presiding judge, Justice Deinde Dipeolu, by Nestoil’s Chairman, Ernest Azudialu-Obiejesi, which led to the proceedings being halted and eventually transferred to Justice Osiagor, ThisDay reports.
At the resumed proceedings on Thursday, the plaintiffs’ counsel, Babajide Koku, SAN, informed the court that his clients had filed a Notice of Appeal challenging Justice Dipeolu’s November 7, 2025 decision to recuse himself from the case based on the petition alleging bias.
He relied on this ground to urge the court to halt proceedings pending the decision of the Court of Appeal on the matter.
However, Nestoil’s counsel, Dr. Muiz Banire, SAN, disagreed with Koku’s submission, arguing that a Notice of Appeal does not automatically stay proceedings. He referred the court to Order 32 Rule 1 of the Federal High Court (Civil Procedure) Rules 2025, which deals with preservative orders.
Chief Wole Olanipekun, SAN, counsel to Neconde Energy Limited, added that the Chief Judge has statutory authority to transfer any matter at any stage of the proceedings, stressing that such transfers are not subject to appeal.
Other counsel in the matter contended that the Mareva injunction had already expired and that the case must commence afresh following its transfer to a new judge.
After hearing from the lawyers, Justice Osiagor agreed that the ex parte Mareva injunction had expired 14 days after the filing of a motion to set it aside.
“The decision that transferred this matter is not appealable. This court will not stay proceedings where filings at the Court of Appeal refer to Dipeolu J. and not Osiagor J.
“There is no longer a subsisting ex parte order, having elapsed 14 days from the Motion on Notice challenging it. As the order has expired, the arguments of parties affected by the ex parte order are now moot or academic,” the judge ruled, ThisDay reports.
The case was subsequently adjourned to 25 November 2025 for the motion for joinder and to 12 December 2025 for the hearing of pending applications.
The controversy stems from a Mareva injunction issued on 22 October 2025 by Justice Dipeolu, which froze 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 the credit facilities were extended to Nestoil-linked entities under the Obijackson Group, secured by assets, shares, and oil field interests.
Justice Dipeolu 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 identified properties.
Justice Dipeolu 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 identified properties.
The order directed the Nigeria Police Force, Nigerian Navy, and State Security Service (SSS) to assist in enforcement.
Following the order, armed police officers reportedly sealed Nestoil’s headquarters in Lagos in late October—an action that underscored the scale of the dispute and the court’s resolve in enforcing compliance.
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 steps in the matter until the complaint was addressed.
Meanwhile, Nestoil filed a separate application before the Federal High Court, Abuja, seeking to set aside the Lagos Mareva order and halt enforcement actions by the receiver-manager.
The Nestoil–FBNQuest dispute is one of the largest commercial litigation matters currently before Nigeria’s Federal High Court, with combined liabilities exceeding N1 trillion in naira and dollar-denominated obligations.
The unfolding legal battle could influence how future high-stakes debt enforcement cases involving corporate borrowers and financial institutions are handled judicially.