$1bn debt: Banks take over Nestoil

The corporate headquarters of Nestoil Limited, located on Akin Adesola Street, Victoria Island, Lagos, was yesterday sealed by the police after the company was reportedly placed under receivership by a consortium of lenders. The company is said to be indebted to the tune of $1 billion. A Federal High Court in Lagos, on October 22, […]

The corporate headquarters of Nestoil Limited, located on Akin Adesola Street, Victoria Island, Lagos, was yesterday sealed by the police after the company was reportedly placed under receivership by a consortium of lenders.

The company is said to be indebted to the tune of $1 billion.

A Federal High Court in Lagos, on October 22, 2025, issued a Mareva injunction authorising First Trustees and its subsidiary, FBNQuest Merchant Bank, to take possession of the company’s assets.

In the suit, presided over by Justice D. I. Dipeolu, the order was granted against Nestoil Limited, its affiliate Neconde Energy Limited, and the company’s principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

Listed as claimants in the court proceedings are several financial and corporate institutions, including Citibank Limited, Central Securities and Clearing Systems Plc, Fidelity Bank Plc, Guaranty Trust Bank Plc, Globus Bank Limited, Keystone Bank Limited, Opay Limited, Polaris Bank Limited, Providus Bank Limited, and Stanbic IBTC Bank Limited.

Others include Standard Chartered Bank Nigeria, Sterling Bank Plc, Titan Trust Bank Limited, Unity Bank Plc, Wema Bank Plc, Gobowen Exploration and Production Limited, Hammakopp Consortium Limited, Krawcod Properties Limited, Santa Spring Oil and Gas Limited, Marine & Ocean Infinity Nigeria Limited, and White Dove Shipping Company Limited.

The order empowers the listed financial institutions to take control of the defendants’ assets pending the determination of the substantive case, scheduled for hearing in November 2025.

The injunction also restrains any dealings in funds amounting to $1,012,608,386.91 and N430,014,064,380.77, representing the total alleged indebtedness as of September 30, 2025.

In addition, there are other debts guaranteed by Ernest Azudialu-Obiejesi, reportedly totalling N366.8 billion, $61.2 million, $152 million, and N10.4 billion, owed to Access Bank, First Bank, and Zenith Bank.

Our correspondent observed dozens of armed police officers enforcing the order to seal off the premises located at 41/42 Akin Adesola Road on Victoria Island.

Members of staff were sent out of the premises as they all watched in bewilderment as the order of possession was being effected.

Nestoil, founded in 1991 by Ernest Azudialu-Obiejesi, is Nigeria’s largest indigenous Engineering, Procurement, Construction and Commissioning (EPCC) Company in the Oil and Gas sector.

However, in recent years, the company has reportedly faced liquidity pressures over indebtedness to lenders.

Daily Trust reports that the company in 2018 had decided to offload part of its shares in oil mining lease (OML) 42 in the Western Niger Delta, which is operated by Neconde Energy Limited, to pay its debts to banks.

However, it got a renewal for the OML42 in 2019 for another 20 years but sources said the assets refinanced by a consortium of lenders have been underperforming, which necessitated the order of Mareva.

A Mareva order, also known as a freezing order, is a court order that prevents a defendant from dealing with their assets while a legal dispute is ongoing. The purpose is to stop the defendant from selling, hiding, or moving assets out of the court’s jurisdiction, which could make it impossible for the plaintiff to collect a potential judgment if they win the case.

“The banks had to move in because the several facilities granted to the company have been underperforming and it is in the interest of the stability of the financial institutions involved to move in as part of the debt recovery process,” a source said.

 

We remain in operation – Nestoil

However, in a statement issued by the company, Nestoil Group said the matter was a commercial dispute currently before the courts, emphasising that the group remains operational.

“The situation relates to a commercial matter currently before the courts, which is being addressed through appropriate legal and regulatory channels,” the statement said.

“The Group continues to cooperate fully with all relevant authorities and financial partners to resolve any outstanding matters in a transparent and responsible manner. Constructive discussions are ongoing, and we remain confident that these engagements will result in a fair and lasting resolution.”

It assured stakeholders that its business operations remain unaffected across all divisions.

“Nestoil remains fully operational across all business lines. Our subsidiaries, projects, and commitments in the oil, gas, power, and infrastructure sectors continue without disruption. Proactive measures have been implemented to protect our workforce, sustain operations, and uphold our obligations to clients and partners.

“For over three decades, Nestoil has built a reputation as one of Nigeria’s foremost indigenous EPC and energy companies. 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 Group urged the public and media to rely only on official communications, assuring that it remains financially strong, operationally stable, and strategically focused despite the ongoing legal proceedings.