BREAKING:Banks Take Over Nestoil Headquarters Over $1 Billion Debt

Police officers on Tuesday sealed off the corporate headquarters of Nestoil Limited on Akin Adesola Street, Victoria Island, Lagos, following a court order placing the company under receivership by a consortium of lenders over an estimated $1 billion debt.

The action came after the Federal High Court in Lagos, presided over by Justice Deinde Isaac Dipeolu, on October 22, 2025, granted a Mareva injunction authorising First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, to take over the assets and operations of Nestoil pending the determination of a substantive debt recovery suit.

Court filings show that the order was sought by a consortium of local and international lenders who accused the oil and gas engineering company of defaulting on loan obligations amounting to about $1,012,608,386.91 and N430,014,064,380.77 as of September 30, 2025. The consortium includes Citibank Limited, Fidelity Bank Plc, Guaranty Trust Bank Plc, Globus Bank Limited, Keystone Bank Limited, Opay Limited, Polaris Bank Limited, Providus Bank Limited, Stanbic IBTC Bank Limited, Standard Chartered Bank Nigeria Limited, Sterling Bank Plc, Titan Trust Bank Limited, Unity Bank Plc, and Wema Bank Plc.

The court order also restrains the listed banks and several affiliated companies, including Gobowen Exploration and Production Limited, Hammakopp Consortium Limited, Krawcod Properties Limited, Santa Spring Oil and Gas Limited, Marine & Ocean Infinity Nigeria Limited, and White Dove Shipping Company Limited, from dealing with or dissipating assets and funds belonging to Nestoil.

The principal promoter of the company, Dr. Ernest Azudialu-Obiejesi, and his wife, Mrs. Nnenna Obiejesi, were also named as defendants in the suit, with court documents indicating that they personally guaranteed portions of the debts owed to several banks, including Access Bank Plc, First Bank of Nigeria Limited, and Zenith Bank Plc.

On Tuesday morning, heavily armed police officers cordoned off Nestoil’s headquarters as the court-appointed receivers and officials of FBNQuest Merchant Bank arrived to take inventory of the company’s assets. Staff members were seen leaving the premises as operations were suspended.

Founded in 1991 by Dr. Azudialu-Obiejesi, Nestoil Limited is one of Nigeria’s leading indigenous engineering, procurement, and construction service companies in the oil and gas sector, with interests extending into energy, power, and infrastructure.

As of press time, Nestoil’s management had yet to issue an official statement on the development, while efforts to reach company representatives for comment were unsuccessful. A senior source close to the lenders confirmed that the enforcement followed several failed attempts to restructure the debt and that the receivership was a “last resort” to safeguard creditor assets.

The case is expected to return to court in the coming weeks for further proceedings on the substantive debt recovery suit.