In a dramatic escalation of a high-stakes financial dispute, FBNQuest Merchant Bank Limited and First Trustees Limited have filed an urgent motion at the Court of Appeal in Lagos, seeking to prevent Nestoil Limited and its associated entities from enforcing a Federal High Court judgment that reversed a controversial asset freezing order.
The motion, filed on Thursday, November 21, 2025, by the plaintiffs’ lead counsel, Babajide Okun SAN, came within hours of Justice Daniel Osiagor’s ruling at the Federal High Court, which effectively lifted the Mareva injunction that had paralyzed Nestoil’s operations since late October.
The Core Allegations
At the heart of this legal battle lies an alleged monumental debt. The plaintiffs claim that Nestoil owes a consortium of eight major Nigerian banks—including Access Bank, Zenith Bank, First Bank of Nigeria, UBA, and others—a staggering $1,012,608,386.91 (approximately $1.01 billion) and N430 billion as of September 30, 2025, with interest continuing to accrue.
According to court filings, Nestoil founder Ernest Azudialu-Obiejesi, his wife Nnenna Obiejesi, and their company Neconde Energy Limited are named as joint and several obligors for what court documents describe as a “humongous indebtedness.”
Asset Dissipation Fears
In a strongly worded affidavit deposed by Babatunde Adewolu, an official of First Trustees, the plaintiffs paint an alarming picture. They accuse the Nestoil founder of establishing “several briefcase and shell companies” with the alleged intention to “conceal and dissipate assets.”
“If the respondents are allowed to dissipate their assets, there can be no return to the status quo if this appeal succeeds,” Adewolu stated in the court document, raising concerns that extend beyond the immediate parties to the dispute.
Perhaps most significantly, the affidavit warns that “monies belonging to innocent depositors who placed their trust and resources in the Nestoil lending banks are at risk of being lost if an injunction is not granted.” The plaintiffs argue that the development carries implications serious enough to “cripple Nigeria’s financial sector and the economy at large.”
Legal Strategy
Okun’s motion seeks two primary reliefs: suspension of Justice Osiagor’s reversal orders and a restraining order preventing Nestoil and its affiliates from taking any enforcement steps pending the determination of the appeal.
The Senior Advocate argues that the appeal raises “substantial points of law” that could irreparably prejudice the case if Nestoil is allowed to act on the lower court’s decision. The Court of Appeal has also been informed that Nestoil and at least one other entity are currently under receivership by deed, with management no longer in control of operations.
A Complex Backstory
This latest legal maneuver is but the newest chapter in an increasingly complex commercial dispute that has seen dramatic twists in recent weeks.
The saga began on October 22, 2025, when Justice Deinde Dipeolu issued a sweeping Mareva injunction freezing Nestoil’s assets, bank accounts, and shares across more than 20 Nigerian financial institutions. The order also appointed Abubakar Sulu-Gambari SAN as receiver-manager, with authority to take possession of Nestoil’s prestigious headquarters at 41/42 Akin Adesola Street, Victoria Island, Lagos.
In an unprecedented move, the court directed the Nigeria Police Force, Nigerian Navy, and State Security Service to support enforcement—leading to armed police officers sealing the oil company’s headquarters in late October in a highly publicized action.
However, proceedings took a dramatic turn when Nestoil’s chairman filed a petition alleging bias against Justice Dipeolu, resulting in the case being reassigned to Justice Osiagor. At a hearing prior to his recusal, Justice Dipeolu had indicated he would refrain from further action until the bias complaint was resolved by the Chief Judge.
Justice Osiagor’s subsequent decision to reverse the freezing order—announced in what Nestoil described as a victory in its public statement titled “NESTOIL WINS FIRST BANK ENTITIES/PROXIES IN FEDERAL HIGH COURT”—appeared to mark a significant reversal of fortune for the embattled oil company.
That reprieve, however, now faces challenge at the appellate level.
Physical Confrontation
The legal battle has spilled into the physical realm. Reports indicate that on November 20, officials attempted to repossess Nestoil’s Lagos headquarters pursuant to an earlier court ruling, resulting in a confrontation at the building between company representatives and enforcement agents.
Nestoil’s Counter-Move
Meanwhile, Nestoil has not been passive in its defense. The company has filed a separate application before the Federal High Court in Abuja, seeking to set aside the Lagos Mareva order and halt the receiver-manager’s enforcement activities, while vehemently denying the debt claims made by the banking institutions.
The Stakes
With billions of dollars in alleged debt, involvement of Nigeria’s major financial institutions, potential implications for depositor funds, and warnings about threats to the country’s financial stability, this case represents one of the most significant commercial disputes in recent Nigerian legal history.
As the Court of Appeal prepares to consider FBNQuest and First Trustees’ urgent motion, the business community, financial sector stakeholders, and legal observers will be watching closely to see how the judiciary navigates this high-stakes battle between banking giants and one of Nigeria’s prominent oil and gas companies.
WHAT YOU SHOULD KNOW
FBNQuest and First Trustees have immediately appealed to block Nestoil from benefiting from a court ruling that lifted a freeze on its assets. The banking entities claim Nestoil owes $1.01 billion and ₦430 billion to eight major Nigerian banks, and warn that allowing the company to access its assets could lead to asset dissipation that threatens depositor funds and Nigeria’s financial sector stability.
This high-stakes legal battle—involving allegations of shell companies, debt denial, armed enforcement at Nestoil’s headquarters, and judicial bias claims—now moves to the Court of Appeal, where judges must balance the oil company’s operational rights against the banks’ concerns about recovering over a trillion naira in alleged debt.
