Supreme Court Reserves Judgement in Neconde, Nestoil’s Appeal against Asset Freezing Order

Alex Enumah in Abuja

The Supreme Court has reserved judgement in the appeals filed by Neconde Energy Limited, Nestoil Limited, and two others against the ruling of the Court of Appeal freezing their assets over an alleged $1.1 billion indebtedness to FBNQuest Merchant Bank Limited and First Trustees Limited.

A five-member panel of the Supreme Court on Monday announced that date for judgement would be communicated to lawyers representing parties in the appeal, shortly after the lawyers identified their processes, adopted and argued their briefs for and against the appeals.

Neconde, Nestoil, and their promoters (Ernest Azudialu-Obiejesi and Nnenna Azudialu-Obiejesi) had, last year, approached the apex court to reverse the order of the appellate court issued against their assets.

They predicated their appeals on the grounds that the Court of Appeal lacked jurisdiction to make the order it did through an ex parte application.

Justice Dehinde Dipeolu of the Federal High Court in Lagos had on October 22, 2025 granted an ex parte order against Nestoil, Neconde Energy Limited, and the company’s principal promoters — Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

The court also barred the defendants from accessing funds, shares, or assets held in more than 20 banks and financial institutions.

In addition, Dipeolu authorised First Trustees Limited and FBNQuest Merchant Bank Limited, representing a consortium of creditor banks, to take possession of Nestoil’s assets under receivership.

However, Chief Judge of the Federal High Court, subsequently, transferred the case to Justice Daniel Osiagor, who on November 21, vacated the Mareva injunction on the grounds, among others, that the 14 days’ order had lapsed.

Dissatisfied, the lenders approached the appellate court to set aside the lifting of the Mareva injunction.

Delivering ruling on November 29, 2025, the Appeal Court ruled in favour of FBNQuest Merchant Bank Limited and First Trustees Limited, and issued a restorative injunction reversing Justice Osiagor’s decision.

Miffed by the ruling of the lower court, the appellants subsequently approached the Supreme Court seeking to upturn the unfavourable decision.

Arguing the case of Neconde in the appeal marked: SC/CV/1130/2025, Chief Wole Olanipekun, SAN, lamented that the interim restrictive orders granted by the Court of Appeal in November 2025 were still in force, preventing company staff from accessing corporate facilities and operations.

Olanipekun told the apex court that the lower court acted “without jurisdiction” in granting the orders, maintaining that there was no valid record of appeal before the court to warrant the proceedings.

He subsequently urged the apex court to allow the appeal, grant all the reliefs sought and “set aside the ruling of the lower court”.

Although, Mr. Muiz Banire, SAN, Chino Obiagwu, SAN, and Kehinde Ogunwunmiju, SAN, lawyers to the third to fifth respondents, did not file any processes in the Neconde appeal, because of their individual appeals, they, however, aligned themselves with the submissions of Olanipekun, stressing that the appellate court lacks the jurisdiction to issue an ex parte order against the appellants.

They also stated that the notice of appeal was never properly served; to warrant the jurisdiction of the Court of Appeal.

After taking arguments from parties in the appeal, Justice Mohammed Garba, who presided over the five-member panel, announced that judgement was reserved to a date that would be communicated, adding, “Appeals in 1130A, 1130B and 1130C shall abide by the outcome of this appeal.”

The dispute stems from debt recovery proceedings instituted by lenders, including FBNQuest Merchant Bank Limited and First Trustees Limited, against Nestoil and Neconde Energy over financing arrangements tied to oil assets and operations.

In October 2025, the Federal High Court in Lagos granted an ex parte Mareva injunction freezing the companies’ assets, bank accounts, and shares across more than 20 financial institutions.

However, the companies challenged the order, arguing that it automatically lapsed after 14 days under the Federal High Court Civil Procedure Rules once a motion to discharge it was filed.

In November 2025, Osiagor held that the ex parte order had expired by operation of law and was no longer subsisting.

But Justice Yargata Nimpar of the Court of Appeal, on November 29, granted an interim restorative injunction returning the control of Nestoil’s assets and operations to the receiver manager appointed by the banks.

Nimpar ruled that all steps Nestoil took after the November 20 ruling were set aside. The Mareva injunction continued to operate.

The dispute later shifted to the question of who had authority to represent the companies in court following the appointment of a receiver-manager.

In January 2026, the Court of Appeal disqualified Olanipekun and Banire from representing Neconde and Nestoil, respectively, holding that the companies’ boards lacked the power to appoint counsel after the receivership took effect.

However, in a subsequent ruling, the Supreme Court overturned the appellate court’s decision, restoring the companies’ right to retain counsel of their choice while challenging the validity of the receivership itself.

In the lead judgement delivered by Justice Mohammed Baba Idris, the apex court described it as a “legal anomaly” for lawyers appointed by the receiver-manager to simultaneously represent the companies whose interests were being contested.

The court held that permitting such representation created a clear conflict of interest and undermined the companies’ right to independent legal representation.

Nestoil Limited (an oil services firm) and its affiliate Neconde Energy Limited (which holds interests in Oil Mining Lease 42) are embroiled in a multibillion-dollar debt recovery suit filed by lenders, primarily FBNQuest Merchant Bank Limited and First Trustees Limited.

The lenders allege that Nestoil, Neconde, and their promoters (Ernest Azudialu-Obiejesi and Nnenna Azudialu-Obiejesi) owe over $2 billion (plus N430 billion in related liabilities) under financing arrangements, including a Common Terms Agreement.