Breaking: Supreme Court Restores Nestoil, Neconde’s Right to Appoint Counsel in Alleged $2bn Debt Dispute, Overturns Appeal Court

Wale Igbintade

The Supreme Court on Friday set aside the judgment of the Court of Appeal, Lagos Division, and restored the appointment of Chief Wole Olanipekun (SAN) and Dr. Muiz Banire (SAN) as counsel representing Nestoil and Neconde in the alleged $2 billion debt suit filed by FBNQuest Merchant Bank Limited and First Trustees.

The appellate court had earlier ruled that the powers of the Ernest Azudialu-Obiejesi-led boards of the companies to appoint lawyers were suspended due to receivership.
However, in its ruling delivered on Friday, the apex court nullified that decision on the grounds of fair hearing.

It held that Nestoil and Neconde remain valid legal entities and, as such, retain the right to engage counsel of their choice to defend their interests.

With the ruling, both companies are now free to appoint their preferred lawyers in the ongoing dispute.

The Supreme Court had previously directed all parties to return to the Court of Appeal to resolve the issue of legal representation and report back on January 26, 2026, on other outstanding issues in the case.

The appeal was filed by Nestoil, Neconde, and their promoters, Ernest Obiejesi and Nnenna Obiejesi.

Chief Olanipekun sought to represent Neconde, while Dr. Banire appeared for Nestoil. Their authority was challenged by Ayo Olorunfemi, who led Ame Ogie for Neconde, and Ayoola Ajayi, who led M.B. Ganiyu for Nestoil.

Details shortly