Nestoil Limited has dragged eight Nigerian banks and the African Export-Import Bank (Afreximbank), before the Federal High Court in Abuja, seeking restraining orders to halt receivership proceedings against it following a Notice of Default.
The legal teams representing Nestoil Limited and the eight Nigerian banks — including Access Bank, FBNQuest Merchant Bank Limited, and Afreximbank — appeared before Justice Mohammed Umar on Wednesday.
Naijaonpoint previously reported that armed officers of the Nigeria Police Force (NPF) recently sealed the headquarters of Nestoil Limited in Victoria Island, Lagos, following a Federal High Court order freezing the company’s assets, bank accounts, and shares over an alleged $1.01 billion and N430 billion debt owed to FBNQuest Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank of Nigeria Limited.
In Nestoil’s motion on notice, dated October 28 and seen by Naijaonpoint, its lead counsel, Mofesomo Tayo-Oyetibo (SAN), sought an order of interlocutory injunction, pending the hearing and determination of the substantive suit.
The motion seeks to restrain the defendants, by themselves, their officers, agents, servants, receivers/managers, liquidators, or any persons acting under their authority, from enforcing or further enforcing the Notice of Default dated May 30, 2025, or any similar notice issued pursuant to the Common Terms Agreement (CTA) dated September 2022.
The senior advocate also urged the court to restrain the defendants from commencing or continuing any legal action, proceeding, or receivership against Nestoil.
He further requested that the defendants be restrained from publishing or indicating in any public medium or credit bureau that Nestoil, its obligors, or guarantors are indebted to them.
Tayo-Oyetibo argued that the respondents are allegedly making “wrongful demands and threats” against his client.
He maintained that Nestoil has “substantially performed its obligations under the CTA and underlying facility agreements,” adding that the company has repaid hundreds of millions of dollars to the banks under the said agreements.
However, he noted that by letters dated May 13 and May 30, 2025 (referred to as “the May Letters”), the 10th respondent issued demand notices to Nestoil under the CTA, alleging indebtedness.
The counsel urged the court to hold that the banks’ alleged refusal to provide Nestoil with its account statements, coupled with their reliance on “opaque computed figures” to make debt recovery threats, was unlawful and oppressive.
In a motion on notice filed by Babajide Okun (SAN), also seen by Naijaonpoint, the respondents urged the court to strike out Nestoil’s suit for being incompetent and an abuse of court process.
Okun argued that the case constituted a “multiplicity of actions” as the same principal parties and subject matter were already pending before the Federal High Court in Lagos.
He noted that the Abuja suit attempts to relitigate issues already before the Lagos court.
He further contended that Nestoil, currently under receivership, lacks the legal standing (locus standi) to initiate the present suit without the consent or approval of the appointed receiver/manager.
He urged the court to regard the present suit as an affront to its jurisdiction.
He urged the court to regard the present suit as an affront to its jurisdiction.
At the resumed hearing on Wednesday, Tayo-Oyetibo (SAN) represented Nestoil, while the banks were represented by B.O. Ofulue.
Tayo-Oyetibo requested that all related processes be consolidated to enable oral argument on points of law.
In response, Ofulue stated that his clients were still within the permitted timeframe to respond to Nestoil’s filings.
He argued that Nestoil ought to have challenged the Lagos receivership verdict rather than filing a fresh suit before the Abuja Division of the court.
Justice Umar, however, advised Ofulue against delving into the substantive issues at this preliminary stage.
Tayo-Oyetibo emphasized the urgency of the matter, alleging that the receiver had locked up Nestoil’s multi-storey building.
Ofulue countered the claim, insisting that the receiver-manager had not shut down Nestoil, but that the company’s directors had instructed staff not to report to work.
Justice Umar stated that all issues raised by the parties would be duly considered and subsequently adjourned the case to December 4, 2025, for hearing.
Videos obtained by Naijaonpoint earlier showed police personnel surrounding Nestoil’s premises, with an inscription on the wall reading “Possession taken by court.”
The enforcement followed a Mareva injunction granted by Justice D. I. Dipeolu of the Federal High Court, Lagos Division, on October 22, 2025. The order authorized the takeover of assets belonging to Nestoil Limited, its affiliate Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi, across more than 20 financial institutions in Nigeria.
The court also directed all affected financial institutions to disclose, under oath, details of funds or investments belonging to Nestoil and its affiliates within seven days of being served with the order.
The Lagos case was adjourned to November 7, 2025, for hearing of the substantive motion on notice.