By Our Reporter
The corporate headquarters of Nestoil Limited in Victoria Island, Lagos, has been sealed by the police after the company was reportedly placed under receivership by a consortium of lenders over a $1 billion debt.
A Federal High Court in Lagos, presided over by Justice D. I. Dipeolu, granted a Mareva injunction on October 22, 2025, authorising First Trustees and its subsidiary, FBNQuest Merchant Bank, to take possession of Nestoil’s assets.
The order was issued against Nestoil Limited, its affiliate Neconde Energy Limited, and principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi. Other defendants include several Nigerian financial institutions such as Citibank, Fidelity Bank, GTBank, Polaris Bank, and Stanbic IBTC Bank, among others.
The injunction empowers the listed institutions to assume control of the defendants’ assets pending the hearing of the substantive case in November. It also restrains transactions involving $1.01 billion and ₦430 billion — the total alleged indebtedness as of September 30, 2025.
In addition, Azudialu-Obiejesi reportedly guaranteed other debts amounting to ₦366.8 billion, $61.2 million, $152 million, and ₦10.4 billion owed to Access Bank, First Bank, and Zenith Bank.
However, Nestoil Group, in a statement, dismissed rumours of a shutdown, describing the situation as a commercial dispute before the courts.
> “The situation relates to a commercial matter currently before the courts, which is being addressed through appropriate legal and regulatory channels,” the company said.
The group emphasized that its operations remain unaffected, noting that all subsidiaries, projects, and commitments across oil, gas, power, and infrastructure sectors are running smoothly.
> “Nestoil remains fully operational across all business lines. Proactive measures have been implemented to protect our workforce, sustain operations, and uphold obligations to clients and partners.”
Reaffirming its three-decade track record, the company added:
> “For over three decades, Nestoil has built a reputation as one of Nigeria’s foremost indigenous EPC and energy companies. We remain guided by our core values of resilience, integrity, and transparency.”
Nestoil also urged the public and media to rely on official communications, assuring stakeholders that the company remains financially strong and strategically focused despite ongoing proceedings.
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