Breaking: NestOil Headquarters Sealed Over $1 Billion Debt | Stakeholder Update
NestOil's headquarters have been sealed by authorities due to a massive $1 billion debt. An urgent stakeholder update has been released. Get the latest details on the situation and its implications.
The Federal High Court sitting in Lagos, presided over by Justice D. I. Dipeolu, issued a Mareva injunction on October 22, 2025, authorising First Trustees and FBNQuest Merchant Bank, subsidiaries of First Bank Holdings, to take over Nestoil's assets pending the resolution of a substantive case.
The court order also directed 17 Nigerian banks, including GTBank, Fidelity, Zenith, Access, and Stanbic IBTC, to freeze Nestoil's accounts, those of its affiliate, Neconde Energy Limited, and those of its promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.
The injunction restrains dealings in a total sum of $1.01 billion and ₦430 billion (about $294 million), representing the alleged indebtedness as of September 30, 2025.
Azudialu-Obiejesi, one of Nigeria's leading indigenous oil entrepreneurs, is personally liable for additional loans totaling more than $200 million with several banks, including Access Bank, First Bank, and Zenith Bank.
Police have since sealed Nestoil's headquarters on Victoria Island, Lagos, as part of enforcement actions related to the receivership.
NetOil's message to stakeholders
However, in an official statement issued on October 28, 2025, Nestoil said the media reports "relate to a commercial matter currently before the courts," and the company is "addressing it through appropriate legal and regulatory channels."
"We continue to cooperate fully with all relevant authorities and financial partners to resolve any outstanding matters in a transparent and responsible manner," the company stated.
"Constructive discussions are ongoing, and we remain confident that these engagements will result in a fair and lasting resolution."
The firm further reassured stakeholders of its business continuity and operational stability, stating that all subsidiaries, projects, and commitments "continue without disruption."
"Nestoil remains financially strong, operationally stable, and strategically focused," the statement added, reaffirming the company's three-decade legacy of integrity and professionalism.
The case, which highlights the growing financial strain within Africa's private oil sector, underscores the fragile balance between corporate leverage and operational survival amid declining oil revenues and tight credit markets.
A hearing on the substantive case is expected next month, as both Nestoil and its lenders prepare for what could be one of Nigeria's most significant corporate debt battles in recent years.
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