Nigerian Supreme Court Overturns Asset Freeze for Neconde Energy and Nestoil Limited
The Supreme Court of Nigeria has reversed a Court of Appeal decision that mandated the freezing of assets belonging to Neconde Energy and Nestoil Limited, along with their key stakeholders, in relation to alleged multibillion-dollar debt defaults. The ruling, delivered by a five-member panel in Abuja on Monday, asserted that the Court of Appeal overstepped its authority when it filed an ex-parte complaint against the oil companies.
In his decision, Chief Justice Stephen Ada noted that the appeal court acted without proper jurisdiction, granting an injunction against Neconde and Nestoil inappropriately. He criticized the lower court for misusing judicial processes by imposing a stay of proceedings at the Federal High Court in Lagos.
Background of the Debt Dispute
The controversy began as FBN Quest Merchant Bank and the First Trustee sought to recover debts reportedly owed by Neconde and Nestoil, alongside their key promoters, Azdyar Obiejesi and Nenna Azdyar Obiejesi. The total debt is claimed to exceed $1 billion and NOK 430 billion. To facilitate this recovery, the financial institutions appointed Mr. Abubakar Sulu Gambari as the trustee overseeing both companies.
Justice Deinde Dipeor of the Federal High Court in Lagos subsequently issued an injunction freezing accounts and shareholdings linked to Mr. Mareba across over 20 financial and corporate entities. In addition, various security agencies were instructed to assist in enforcing the directive. The order authorized the Receiver-Administrator to assume control of Neconde’s interests in OML 42, a jointly operated oil field with NNPC Limited, alongside other significant assets owned by the company.
The Receiver-Administrator took possession of Nestoil’s headquarters on October 22, 2025. Following claims of bias and misconduct, Chief Justice John Tsoho of the Federal High Court reassigned the case to another judge. On November 20, 2025, the newly appointed Judge J. Osiagor voided the original receivership order, prompting FBN Quest Merchant Bank and the First Trustee to file an appeal two days later.
Legal Developments and Court Actions
On November 29, 2025, the Court of Appeal, presided over by Justice Yargata Nimpal, issued a restorative injunction originating from an ex-parte application filed by the financial institutions involved. This order reinstated the original injunction against Neconde and Nestoil, preventing the companies and their representatives from interfering with the Receiver-Administrator pending the outcome of the appeal.
On January 12, 2026, the Supreme Court directed all parties to return to the Court of Appeals to resolve critical procedural questions related to the case. Chief Justice Ada emphasized the necessity of clarifying legal representation, which led to the Court of Appeal disqualifying lawyers Wole Olanipekun, Muizu Vanile, and their associates from representing Neconde and Nestoil on January 23, 2026. The court ruled that Azdyar Obiejesi’s powers had been suspended following the appointment of Sulu Gambari as trustee.
