A major legal storm has erupted over sweeping ex parte orders granted by Justice Dehinde Dipeolu of the Federal High Court, Lagos, which froze the accounts, shares, and assets of Nestoil Limited and its affiliates in connection with an alleged debt recovery case exceeding $1.01 billion and N430 billion.
The controversial orders, issued on October 22, 2025, followed an ex parte application filed by FBNQuest Merchant Bank Limited and First Trustees Limited, restraining Nestoil Limited, Neconde Energy Limited, and other affiliates from operating their bank accounts or dealing in their assets held in any Nigerian financial institution.
At the heart of the dispute is Neconde Energy Limited, which has condemned its inclusion in the court’s Mareva and receivership orders as “wrongful, oppressive, and a clear case of judicial overreach.”
Foreign Lenders Move to Intervene
In a new twist, Glencore Energy UK Limited, Fidelity Bank Plc, Mauritius Commercial Bank Limited, and the Africa Finance Corporation (AFC)—collectively referred to as the Senior Lenders—have filed motions through their counsel, Olufemi Oyewole (SAN), seeking to be joined as defendants to challenge and overturn the far-reaching ex parte orders.
They argued that the plaintiffs failed to disclose to the court the existence of a Senior Secured Medium-Term Facility Agreement dated April 27, 2016, under which Neconde obtained a $640 million syndicated loan. According to them, the Deed of Charge dated December 8, 2022—relied upon by FBNQuest—was registered only against Nestoil Limited, not Neconde Energy Limited, making it defective and unenforceable against Neconde.
The Senior Lenders emphasized that FBNQuest’s charge ranks subordinate to existing senior security documents and that the interim orders risk triggering loan defaults and potential insolvency, which could paralyze Neconde’s operations.
Petitions and Judicial Investigation
When the case resumed on November 7, 2025, Justice Dipeolu announced he had received a petition addressed to the Chief Judge of the Federal High Court concerning his handling of this and related cases. Consequently, he suspended further proceedings pending the Chief Judge’s directive.
The petitions accuse Justice Dipeolu of judicial misconduct and reckless issuance of ex parte Mareva orders in two related suits FBNQuest Merchant Bank & Anor v. Nestoil Ltd & Ors (FHC/L/CS/2127/2025) and Aries Energy v. Neconde Energy & Ors (FHC/L/CP/1439/2025) alleging that he froze properties belonging to third parties, including Nestoil Tower, which were not indebted to the plaintiffs.
The petitioners also faulted the authorization given to the Nigerian Navy and Department of State Services (DSS) to assist a receiver in enforcing civil orders and selling crude oil from OML 42, describing it as unlawful and contrary to the preservative intent of interim injunctions.
Neconde and Nestoil’s Legal Position
Neconde has filed processes seeking to discharge the ex parte orders, arguing that the suit is jurisdictionally incompetent, as it was filed while the company is under winding-up proceedings before the same Federal High Court (Suit No. FHC/CP/1439/2025: Aries Energy v. Neconde Energy Limited & Ors).
Under the Companies and Allied Matters Act (CAMA) 2020, Neconde contends that any disposition or seizure of its assets during liquidation proceedings is void unless specifically authorized by the court.
Neconde, a major independent oil producer in OML 42, insisted that it is not indebted to the plaintiffs and has no connection to the syndicated loan at issue. Its lawyers maintain that the sweeping orders have halted daily crude production of over 40,000 barrels, with serious implications for both company operations and national revenue.
Similarly, Nestoil and its affiliates have filed motions describing the orders as unconstitutional, oppressive, and obtained through suppression of material facts. They accused FBNQuest of misleading the court and acting in “profound haste,” despite existing restructuring agreements.
The defendants cited a Common Terms Agreement (CTA) executed in December 2022, which restructured the loans over ten years, rendering the current suit premature. They further alleged that FBNQuest failed to provide audited statements for over three years and inflated its claims with illegal charges.
Industry sources have warned that the continuing legal battle, if unresolved, could severely disrupt oil production in OML 42 once one of Nigeria’s largest fields and further undermine investor confidence in the indigenous energy sector.
