$1bn Debt: Banks Place Nestoil Under Receivership, Company Operations Halted

Police have sealed the corporate headquarters of Nestoil Limited in Lagos after the company was placed under receivership by a group of lenders over a reported $1 billion debt.

A Federal High Court in Lagos, on October 22, 2025, issued a Mareva injunction authorising First Trustees and its subsidiary, FBNQuest Merchant Bank, to take control of Nestoil’s assets.

Presiding Judge D. I. Dipeolu granted the order against Nestoil Limited, its affiliate Neconde Energy Limited, and the company’s principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi. The financial institutions were empowered to seize the defendants’ assets pending the substantive hearing in November 2025. The court also restricted dealings in funds amounting to $1,012,608,386.91 and ₦430,014,064,380.77 — the total indebtedness as of September 30, 2025.

Additional debts personally guaranteed by Azudialu-Obiejesi include more than ₦366.8 billion, $61.2 million, $152 million, and ₦10.4 billion.

Responding to the development, the Nestoil Group said the issue concerns a commercial dispute currently before the court and is being handled through appropriate legal and regulatory processes.

“The Group continues to work closely with relevant authorities and financial partners to resolve outstanding issues transparently and responsibly. Constructive discussions are underway, and we remain confident in reaching a fair and lasting resolution,” the company stated.

It further assured that Nestoil remains fully operational across all business lines, with projects in oil, gas, power, and infrastructure continuing without disruption. The company added that proactive steps have been taken to protect its workforce, sustain operations, and meet obligations to clients and partners.