Supreme Court Decision Restores Nestoil and Neconde Control as Major International Lenders Challenge FBN Trustees

A consortium of international senior lenders will return to court on June 22, 2026 to challenge what they say are unlawful actions by First Bank Nigeria Trustees and its appointed Receiver‑Manager.

In Suit No FHC/L/CS/2545/2025, the lenders allege serious breaches of fiduciary duty and trust, including the creation of unauthorized security interests without their consent. They seek extensive relief, including the invalidation of the disputed security, the removal of FBN Trustees, and the complete ouster of the purported Receiver‑Manager.

These proceedings follow the Supreme Court judgment of June 1, 2026, which overturned Court of Appeal orders that had previously justified the Receiver‑Manager’s actions. Those orders had been used to justify sweeping enforcement measures, such as attempts to seize control of Nestoil and Neconde’s assets. With the orders nullified, the legal basis for those actions collapsed and all assets and accounts of Neconde and Nestoil were unfrozen.

The Receiver’s powers had already been suspended by a Federal High Court order dated December 1, 2025. The Supreme Court’s decision reinforced that position by vacating any remaining legal basis for continued authority over the companies.

The senior lenders’ case centers on the argument that no legal trigger existed to justify FBN’s appointment of a receiver‑manager. The Supreme Court not only set aside the interim orders but also rebuked the Court of Appeal for exceeding its jurisdiction and misusing ex parte processes to grant sweeping asset control without providing Nestoil and Neconde a fair hearing.

That criticism highlights the procedural breaches that underpinned the attempted enforcement. Today the position is clear: control of assets, accounts, and operations has been fully restored to Nestoil and Neconde. The Receiver‑Manager is on hold, his authority suspended and under direct legal challenge, while the security supporting his appointment is now under intense judicial scrutiny.

One fact is no longer in doubt: the Supreme Court’s ruling dismantled the legal scaffolding that enabled the attempted takeover and reaffirmed the primacy of due process. For Nestoil and Neconde, it marks a powerful reassertion of lawful corporate control.