Supreme Court sets aside order freezing Nestoil, Neconde’s assets

The Supreme Court has annulled an order from the Court of Appeal that froze the assets of Neconde Energy Limited, Nestoil Limited, and two other entities, following an alleged $1.1 billion debt to FBNQuest Merchant Bank Limited and First Trustees Limited.

A five‑member panel of the apex court, in a judgment delivered on Monday, held that the three‑member panel of the appellate court had exceeded its authority by granting an ex parte application against the appellants.

Justice Stephen Jonah Adah, writing for the court, criticized the appellate court for assuming jurisdiction and issuing an injunction against Neconde and Nestoil when the matter had not been properly before the court.

The Supreme Court also accused the appellate court of misusing the judicial process, particularly when the Court of Appeal issued a stay of proceedings at the Federal High Court in Lagos.

The dispute originates from debt‑recovery proceedings initiated by lenders, including FBNQuest Merchant Bank Limited and First Trustees Limited, against Nestoil and Neconde Energy over financing arrangements linked to oil assets and operations.

In October 2025, the Federal High Court in Lagos granted an ex parte Mareva injunction that froze the companies’ assets, bank accounts, and shares across more than 20 financial institutions.

The companies challenged the order, arguing that it automatically lapsed after 14 days under the Federal High Court Civil Procedure Rules once a motion to discharge it was filed.

In November 2025, Justice Daniel Osiagor held that the ex parte order had expired by operation of law and was no longer in force.

However, on November 29, Justice Yargata Nimpar of the Court of Appeal granted an interim restorative injunction that returned control of Nestoil’s assets and operations to the receiver manager appointed by the banks.

He ruled that all steps Nestoil took after the November 20 ruling were set aside, while the Mareva injunction remained in effect.

That appellate decision has now been set aside, allowing the matter to proceed at the trial court and restoring full control of Neconde and Nestoil to their respective companies.