Nigerian banks have taken control of Nestoil Limited, a major energy company, due to an alleged debt of over $1 billion. The development has led to the sealing off of the company’s corporate headquarters in Victoria Island, Lagos, by the Nigeria Police Force.

A Federal High Court in Lagos issued an order of Mareva on October 22, 2025, authorizing First Trustees and its subsidiary, FBNQuest Merchant Bank, to take over Nestoil’s assets. The order, issued by Justice D. I. Dipeolu, targets Nestoil Limited, its affiliate Neconde Energy Limited, and the company’s principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

Several financial institutions, including Citibank, Fidelity Bank, Guaranty Trust Bank, and Stanbic IBTC Bank, among others, have been listed as “affected parties” in the suit. The court has mandated these banks to freeze the assets of the defendants until the substantive case is heard next month. The total indebtedness, as of September 30, 2025, stands at $1,012,608,386.91 and N430,014,064,380.77.

Additionally, Azudialu-Obiejesi has personally guaranteed significant debts to various banks, including Access Bank, First Bank, and Zenith Bank, totaling over N366.8 billion, $61.2 million, $152 million, and N10.4 billion. The court’s decision to grant the order of Mareva is a significant development in the case, highlighting the severity of the debt crisis facing Nestoil Limited.

The takeover of Nestoil Limited by Nigerian banks is a notable example of the country’s efforts to address debt issues in the energy sector. The case is expected to have significant implications for the company’s operations and the Nigerian economy as a whole. As the substantive case is set to be heard next month, the outcome will be closely watched by industry stakeholders and financial experts. The Nigerian government’s stance on debt recovery and the role of the judiciary in resolving such disputes will also be under scrutiny.