There is no end in sight to the debt crisis surrounding Nestoil Limited as the issue took a major turn on Monday following the repossession of the corporate headquarters of the oil and gas engineering firm in Victoria Island, Lagos.

The court-appointed receiver repossessed the building following a restorative injunction issued by the Court of Appeal, Lagos, which reinstated the receiver’s authority after weeks of conflicting court orders.

Heavily armed police officers were deployed to enforce the appellate court’s decision as observed by one of our correspondents yesterday in what appeared a significant escalation in the legal battle between the Nestoil Group and a consortium of Nigerian lenders.

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Nestoil, one of Nigeria’s leading energy and infrastructure companies, has been embroiled in a financial crisis linked to debts reportedly exceeding $2 billion.

The company, along with its sister firm Neconde Energy Limited, had taken multiple facilities from several banks to fund upstream oil operations and infrastructure projects.

As oil prices fluctuated and project timelines slipped, the companies struggled to service their obligations, leading to loan defaults and growing tensions with lenders.

On October 22, 2025, the Federal High Court in Lagos issued a Mareva injunction authorising First Trustees Ltd and FBNQuest Merchant Bank to take over Nestoil and Neconde’s assets.

The court also restrained the companies and their promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi, from dealing with funds totalling $1.012 billion, and N430 billion.

This represents the outstanding indebtedness as of September 30, 2025.

Following the Mareva order, Nestoil and Neconde sought relief from another division of the Federal High Court, asking that the asset-freezing injunction be set aside.

That court granted an order directing the receiver to stay action, effectively pausing the takeover process.

In the process the company repainted the building to remove the possession order earlier inscribed on the building by the receiver-manager.

The lenders, led by FBN Merchant Bank and First Trustees, then approached the Court of Appeal to clarify the legal position and protect their interests.

Appeal court steps in to restore status quo

In a motion ex parte filed on November 26, 2025, the lenders asked the Court of Appeal to: Reverse all steps taken pursuant to the November 20 order that halted the receivership.

Stop Nestoil, Neconde, and their promoters from obstructing the receiver/manager and suspend proceedings at the Federal High Court until the appeal is heard.

Justice Yargata Nimpar, presiding over the Court of Appeal in Lagos, granted all three requests in a ruling dated November 28, 2025.

The ruling effectively reinstated the receiver’s mandate and restored the original takeover process—at least until the court hears the substantive motion on December 4, 2025.

To enforce compliance and prevent interference, police officers moved into Nestoil’s headquarters on Monday, securing the premises under the receiver’s control.