NestOil Headquarters Sealed Over $1 Billion Debt, Stakeholders Receive Urgent Update

Nigeria's indigenous oil and gas powerhouse, Nestoil Limited, has been placed under receivership by a consortium of banks seeking to recover about $1 billion in debts, even as the company insists it remains fully operational and financially stable.

• A Lagos Federal High Court placed Nestoil under receivership over a $1bn debt dispute involving multiple Nigerian banks.
• The Mareva injunction authorises FBNQuest Merchant Bank and First Trustees to take control of the company’s assets.
• Nestoil’s management says it remains “financially strong” and continues to operate all subsidiaries without disruption.
• The case underscores rising debt pressures in Africa’s private oil sector amid volatile global crude markets.

Federal High Court Orders Asset Freeze and Takeover of Nestoil Holdings Amid $1 Billion Debt Case

The Federal High Court in Lagos, under the authority of Justice D. I. Dipeolu, has granted a Mareva injunctionempowering First Trustees and FBNQuest Merchant Bank, both subsidiaries of First Bank Holdings, to assume control of Nestoil’s assets pending the determination of a substantive debt litigation.

The court further instructed 17 Nigerian financial institutions, including GTBank, Fidelity, Zenith, Access, and Stanbic IBTC, to place a freeze on all bank accounts belonging to Nestoil Limited, its affiliate Neconde Energy Limited, and their promoters, Dr. Ernest Azudialu-Obiejesi and Mrs. Nnenna Obiejesi.

The injunction covers a combined sum of $1.01 billion and ₦430 billion (approximately $294 million), reflecting the alleged outstanding liabilities as of September 30, 2025.

Dr. Azudialu-Obiejesi, widely regarded as one of Nigeria’s foremost indigenous oil executives, is said to hold personal liabilities exceeding $200 million across multiple lenders, including Access Bank, First Bank, and Zenith Bank.

Law enforcement authorities have since sealed Nestoil’s Victoria Island headquarters in Lagos as part of ongoing receivership enforcement.

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Nestoil Responds to Stakeholders

In a formal communication released on October 28, 2025, Nestoil clarified that the reports pertain to an ongoing commercial dispute currently before the courts. The company emphasized that it is managing the matter through lawful and regulatory processes.

“We are in full cooperation with the relevant authorities and our financial partners to resolve all pending issues transparently and responsibly,” the statement read.

Nestoil noted that constructive discussions are underway, expressing optimism for a balanced and lasting settlement. The company also reassured stakeholders of uninterrupted operations, affirming that all projects, subsidiaries, and contractual commitments remain active.

“Nestoil remains financially resilient, operationally stable, and strategically committed to its mission,” the statement concluded, reiterating its legacy of over three decades of integrity and professionalism.

Industry observers describe the case as one of Nigeria’s most significant corporate debt disputes in recent memory, reflecting the increasing financial pressures facing private oil and gas firms amid shrinking revenues and constrained credit availability.

A substantive hearing is scheduled for next month, with both Nestoil and its lenders preparing for what could shape future debt recovery precedents within Nigeria’s corporate landscape.

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