FEDERAL HIGH COURT ORDER: POLICE SEAL NESTOIL HEADQUARTERS OVER $1 BILLION DEBT AS RECEIVERSHIP TAKES EFFECT

Armed police officers have sealed off the corporate headquarters of Nestoil Limited, a leading Nigerian oil and gas conglomerate, located at 41/42 Akin Adesola Street, Victoria Island, Lagos, following a Federal High Court order authorising a consortium of lenders led by FBNQuest Merchant Bank and First Trustees Limited to take over the company’s assets.

The action comes after Justice D. I. Dipeolu of the Federal High Court, Lagos Division, on October 22, 2025, granted a Mareva injunction freezing the bank accounts and assets of Nestoil Limited, its affiliate Neconde Energy Limited, and their principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi, over a reported $1.01 billion and ₦430 billion debt default owed to the plaintiffs.

The court’s directive, contained in an order certified by Deputy Chief Registrar Longs G. Longwa, instructed the Deputy Inspector General of Police (Operations) to assist the court bailiffs and the appointed receiver-manager in executing the ruling.

In compliance, police officers moved in on Tuesday, October 28, 2025, sealing off Nestoil’s headquarters and other identified assets pending further court proceedings.

According to the order, Abubakar Sulu-Gambari (SAN) has been appointed as the receiver/manager with the authority to assume full control of the company’s headquarters and its associated properties. The directive further mandated the Nigeria Police Force, Nigerian Navy, and State Security Service (SSS) to provide security support to ensure a peaceful and lawful enforcement of the receivership.

Justice Dipeolu’s injunction extended beyond the company’s physical assets. The ruling froze Nestoil’s and Neconde’s bank accounts and shares across more than 20 financial and corporate institutions, including:

Citibank Nigeria Limited

Guaranty Trust Bank PLC

Fidelity Bank PLC

Stanbic IBTC Bank PLC

Polaris Bank Limited

Standard Chartered Bank Nigeria Limited

Opay Limited

Providus Bank Limited

Sterling Bank PLC

Titan Trust Bank Limited

Wema Bank PLC

Unity Bank PLC

Central Securities and Clearing Systems PLC

and several others, alongside affiliated companies such as Gobowen Exploration and Production Limited, Santa Spring Oil and Gas Limited, and White Dove Shipping Co. Ltd.

The injunction further empowered the receiver/manager to take over Neconde Energy Limited’s interest in Oil Mining Lease (OML) 42, which is jointly operated with the Nigerian National Petroleum Company Limited (NNPCL).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPCL were directed to cooperate with the receiver in managing the oil asset, overseeing production activities, and coordinating revenue flows to protect lenders’ interests.

The Federal High Court has adjourned the case to November 7, 2025, for the hearing of the substantive motion on notice.

As of the time of reporting, Nestoil Limited and its chairman, Dr. Ernest Azudialu-Obiejesi, had not issued any official statement in response to the receivership order or the police enforcement action.

This development marks one of the largest corporate debt recovery and receivership actions in Nigeria’s oil and gas sector in recent years, highlighting the growing tensions between major lenders and energy firms facing financial distress amid fluctuating glo bal oil prices and tightening credit conditions.