Nestoil Limited Engages in Dispute with Appointed Receiver
Nestoil Limited has found itself at the center of a contentious dialogue with Mr. Abubakar Sulu Gambari, the designated receiver and administrator for both Nestoil and Neconde Energy, over allegations of default on financial obligations. This dispute has intensified following a recent Supreme Court ruling.
In response to a press statement issued by Mr. Sulu Gambari, Nestoil pointed out that while he acknowledged the Supreme Court’s annulment of a prior Court of Appeal decision that had granted him injunctive relief, he continued to suggest that the court’s decision did not impede his authority as receiver and administrator. Nestoil firmly declared that Gambari’s attempt to misinform the public was unacceptable.
The company articulated that Gambari had either deliberately withheld information or failed to disclose essential details regarding the Federal High Court’s order, which has significantly restrained his powers since December 1. This ruling was issued by Justice P. O. Riff in Suit No. FHC/ABJ/CS/2534/2025.
Nestoil further stated that the April 10, 2026 judgment from the Supreme Court clarified that the powers of a trustee could be contested in actions brought by his appointees in the Federal High Court. Consequently, any assertion of authority by the trustee in such legal actions is not tenable.
Moreover, Nestoil challenged the portrayal of the receiver/administrator’s role as one with unlimited powers over the company and its assets. They labeled this claim as misleading and contrary to the current legal landscape, emphasizing a need for clarity regarding Gambari’s responsibilities.
On the same day, the Supreme Court overturned a previous Court of Appeal order that had frozen the assets of Neconde and Nestoil, as well as those of the principal stakeholders involved, who were facing allegations of loan defaults. Chief Justice Stephen Ada noted that the Court of Appeal had exceeded its jurisdiction by granting injunctions based on ex parte claims against the two oil companies.
Background on Debt Recovery Efforts
This legal confrontation stems from attempts by FBN Quest Merchant Bank and the First Trustee to recover debts exceeding $1 billion and NOK 430 billion allegedly owed by Mr. Nekonde, Mr. Nestoil, and principal promoters Mr. Azdial Obiejesi and Mr. Nenena Azdial Obiejesi.
In a bid to facilitate the debt recovery process, the financial institutions appointed Mr. Sulu Gambari as the receiver and administrator for both Nestoil and Neconde. Following this appointment, Justice Deinde Dipeor of the Lagos Federal High Court issued an injunction that froze Mareba’s accounts and shareholdings across more than 20 financial and corporate entities, instructing several security agencies to assist the receiver in the enforcement.
Judicial Proceedings and Disqualifications
The injunction granted the receiver-administer control over Neconde’s interests, particularly in OML 42, an oil field operated in collaboration with NNPC Limited. Mr. Gambari took control of Nestoil’s headquarters on October 22, 2025.
Allegations of impropriety and favoritism surrounding Mr. Nestoil and Mr. Nekonde prompted Federal High Court Chief Justice John Tsoho to transfer the case to a different judge. On November 20, 2025, the new presiding judge, J. Osiagoe, revoked the earlier receivership order. This decision was subsequently appealed by FBN Quest Merchant Bank and the First Trustee.
On November 29, 2025, the Court of Appeal issued a judgment restoring the injunction at the request of the financial institution, thereby reversing Judge Osiagoe’s earlier ruling. This order further prohibited Mr. Nestoil, Mr. Nekonde, and their representatives from undermining the authority of the receiver-administrator while the matter awaited a hearing.
The Supreme Court later directed all parties back to the Court of Appeals to resolve pressing procedural issues. Ultimately, on January 23, the Court disqualified lawyers representing Nekonde and Nestoil, ruling that Asdial Obiejesi’s powers were effectively suspended due to the appointment of Sulu Gambari as trustee.
