- The Appeal Court delays the case after a dispute over legal representation stalls proceedings.
- The conflict involves alleged liabilities exceeding N1 trillion across several major companies.
The Nestoil receivership dispute took a new turn on Thursday when the Court of Appeal in Lagos paused proceedings because lawyers clashed over who should represent the companies involved. The disagreement halted the high-profile matter immediately, and the court explained that it must settle the representation issue before it can hear the main appeal. The case continues to draw national attention due to its scale and complex legal implications.
Presiding Justice Yargata Nimpara adjourned the case to 15 January 2026. She noted that the court cannot proceed until it confirms which counsel legitimately represents Nestoil Limited and Neconde Energy Limited. The dispute stems from an alleged $1.01 billion debt claimed by FBNQuest Merchant Bank and First Trustees Limited.
The Appeal Court had earlier issued an interim order restraining Nestoil, Neconde and two others from interfering with a court-appointed receivership manager. The order followed warnings that the companies planned to move assets previously covered by a lifted Mareva injunction. The ruling, delivered on 27 November 2025, also set additional hearing dates for December.
During Thursday’s hearing, several senior advocates appeared for the respondents. Ayoola Ajayi, SAN, represented Nestoil, while Ayo Olorunfemi, SAN, appeared for Neconde. However, Muiz Banire, SAN, and Wole Olanipekun, SAN, also claimed the same roles because they represented both companies at the Federal High Court. Their appearance triggered an immediate confrontation.
Ajayi urged the court to decide who holds proper authority to act for the companies. Banire maintained that his representation remains valid since he served as counsel of record in the lower court. Olanipekun supported this position and added that nobody had formally challenged his appearance.
Justice Nimpara confirmed that multiple applications for change of counsel were already before the court. She stressed that the justices must resolve these applications before addressing any other motions. She then adjourned the matter to allow all parties to submit the required documentation.
A senior Nestoil official revealed that Nestoil and Neconde had petitioned the National Judicial Council over concerns surrounding earlier rulings. One justice reportedly stepped aside, which prompted the President of the Court of Appeal to reassign the matter.
The case traces back to an ex parte application filed on 26 November 2025. The appellants sought to overturn steps taken by Nestoil and Neconde after a Federal High Court ruling lifted freezing orders on their properties. FBNQuest Merchant Bank and First Trustees Limited secured the receivership order that appointed Abubakar Sulu-Gambari, SAN, to take possession of major assets, including Nestoil’s Victoria Island headquarters.
Security agencies enforced the order and sealed the premises. The proceedings later shifted after Nestoil Chairman Ernest Azudialu-Obiejesi accused the initial judge of bias, leading to a reassignment. Nestoil continues to deny the alleged debt and is challenging the receivership order at the Federal High Court in Abuja.
This dispute ranks among Nigeria’s largest commercial cases, with alleged liabilities exceeding N1 trillion. Its outcome will likely influence future high-stakes enforcement battles between financial institutions and major corporations.