Nigerian banks have taken control of Nestoil Limited, a major energy company, over an alleged debt exceeding $1 billion. The Nigeria Police Force has sealed the company’s corporate headquarters on Victoria Island, Lagos, following a Federal High Court order issued on 22 October 2025. Justice D. I. Dipeolu granted a Mareva injunction authorising First Trustees and its subsidiary, FBNQuest Merchant Bank, to assume possession of Nestoil’s assets. The injunction targets Nestoil Limited, its affiliate Neconde Energy Limited, and the company’s principal promoters, Ernest Azudialu‑Obiejesi and Nnenna Obiejesi.
Several financial institutions have been named as “affected parties” in the suit, including Citibank, Fidelity Bank, Guaranty Trust Bank and Stanbic IBTC Bank, among others. The court has ordered these banks to freeze the defendants’ assets until the substantive hearing, scheduled for next month. As of 30 September 2025, Nestoil’s total indebtedness stands at $1,012,608,386.91 and ₦430,014,064,380.77. In addition, Azudialu‑Obiejesi has personally guaranteed substantial debts to various banks—Access Bank, First Bank and Zenith Bank—amounting to over ₦366.8 billion, $61.2 million, $152 million and ₦10.4 billion respectively.
The court’s decision to grant the Mareva order marks a significant development, underscoring the severity of Nestoil’s debt crisis. The banks’ takeover of Nestoil Limited illustrates Nigeria’s broader effort to address debt problems in the energy sector. The forthcoming substantive case is expected to have far‑reaching implications for Nestoil’s operations and the Nigerian economy. Industry stakeholders and financial experts will closely monitor the outcome, as it will also shed light on the government’s stance on debt recovery and the judiciary’s role in resolving such disputes.
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