LAGOS, Nigeria (FN) — Nigerian energy firm Nestoil Limited has been placed under receivership by a consortium of lenders over an alleged debt exceeding 1 billion Dollars, prompting police to seal its corporate headquarters in Lagos. Despite the court order, the company says its operations remain unaffected, and government officials are calling for calm.
A Federal High Court in Lagos issued a Mareva injunction on Oct. 22, authorizing First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, to take possession of Nestoil’s assets. The order also applies to Neconde Energy Limited, an affiliate of Nestoil, and the company’s principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.
The injunction restrains any dealings in funds totaling more than 1 billion Dollars and N430 billion (approximately 480 million Dollars), representing the alleged indebtedness as of Sept. 30. Additional debts personally guaranteed by Azudialu-Obiejesi reportedly include N366.8 billion, 61.2 million Dollars, 152 million dollars, and N10.4 billion owed to Access Bank, First Bank, and Zenith Bank.
More than 20 financial and corporate institutions were named in the court proceedings, including Citibank, Fidelity Bank, Guaranty Trust Bank, Stanbic IBTC, Standard Chartered Bank Nigeria, and several oil and gas firms.
In a statement issued Tuesday, Nestoil described the situation as a commercial dispute currently before the courts. “The Group continues to cooperate fully with all relevant authorities and financial partners to resolve any outstanding matters in a transparent and responsible manner,” the company said. It emphasized that its operations across oil, gas, power, and infrastructure sectors remain ongoing.
President Bola Tinubu responded to the development during a briefing with economic advisers, stating, “We must protect the integrity of our financial system while ensuring that indigenous companies are not unfairly crippled. Due process must prevail, and we expect all parties to act responsibly.”
Senate President Godswill Akpabio also weighed in, urging restraint and transparency. “This is a significant matter involving one of Nigeria’s leading energy firms. The Senate will monitor the situation closely and ensure that legal and financial institutions uphold fairness and accountability,” he said.
Minister of Industry, Trade and Investment Dr. Jumoke Oduwole echoed the administration’s stance, noting that the government remains committed to supporting indigenous businesses while respecting the rule of law. “We encourage constructive resolution and will continue to engage stakeholders to prevent disruptions in critical sectors,” she said.
Nestoil reaffirmed its commitment to integrity, citing its three-decade legacy in Nigeria’s energy sector. “We remain guided by our core values of resilience, integrity, and transparency, and will continue to conduct our business with professionalism and respect for the rule of law.”
The company urged the public and media to rely solely on official communications, assuring stakeholders that it remains financially strong and strategically focused despite the ongoing legal proceedings. The substantive case is scheduled for hearing in November.
