Court Of Appeal Order Triggers Police Takeover Of Nestoil Headquarters Amid $2bn Debt Battle

The financial woes of Nestoil Limited, owned by billionaire oil and gas executive Ernest Azudialu-Obiejesi, worsened on Monday after the company’s corporate headquarters in Victoria Island, Lagos, was taken over by a court-appointed receiver from FBN Quest Merchant Bank.

The takeover followed a restorative injunction issued by the Court of Appeal, marking a significant setback for Nestoil and its affiliate companies amid intensifying legal and debt disputes.

Nestoil and its sister firm, Neconde Energy Limited, are currently embroiled in a multi-billion-dollar debt crisis. The companies were earlier placed under receivership by a consortium of lenders over a reported $2 billion liability, based on an order of the Federal High Court. However, they later obtained a separate interim injunction from another High Court directing the receiver to halt enforcement actions.

In an ex-parte motion filed on November 26, 2025, FBN Merchant Bank Ltd and First Trustees Ltd asked the Court of Appeal to reverse all steps taken by Nestoil and Neconde in reliance on the High Court order and to restrain them from obstructing the receiver/manager.

The banks specifically sought:

• A restorative injunction nullifying actions taken by the respondents pursuant to the November 20, 2025 Federal High Court order.
• An interim injunction stopping the respondents and their agents from interfering with the receiver/manager’s duties.
• A stay of proceedings in the lower court pending the determination of their motion on notice.

A three-man panel of the Court of Appeal, led by Justice Yargata Nimpar, granted the reliefs on November 28, 2025. Acting on the order, police officers moved into Nestoil’s Lagos headquarters on Monday to enforce the receivership.

The court also fixed December 4, 2025, for hearing of the substantive motion on notice.