KEY POINTS
- Nestoil says its operations remain uninterrupted despite the sealing of its Lagos office.
- The closure follows a Federal High Court order over a $1.01 billion and N430 billion debt dispute with FBNQuest Merchant Bank and First Trustees.
- The company insists business continuity plans are in place while the matter is being resolved through legal channels
Nestoil Group has insisted that its operations across Nigeria remain unaffected despite the recent sealing of its Lagos head office by security operatives acting on a court order.
The oil and gas conglomerate confirmed that the development stemmed from an ongoing legal dispute with FBNQuest Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank of Nigeria Limited, over alleged unpaid credit facilities.
In a statement issued on Tuesday, the company said the temporary closure of its Victoria Island headquarters would not hinder its business activities, adding that remote working measures and contingency plans had already been activated to maintain full operational capacity.
“Nestoil Group is aware of the reports and ongoing legal processes currently before the courts,” the statement read. “We are addressing the matter through appropriate legal and regulatory channels while ensuring that our subsidiaries, projects, and commitments across the oil, gas, power, and infrastructure sectors remain fully operational.”
The firm added that it had implemented proactive steps to protect its workforce and safeguard project timelines. “Our focus remains on fulfilling our obligations to clients and partners while engaging constructively with relevant authorities to reach a lawful resolution,” it said.
Debt Dispute Spurs Receivership and Asset Freeze
The Federal High Court in Lagos, presided over by Justice D. I. Dipeolu, had earlier granted a receivership enforcement order on 22 October 2025 following claims by First Trustees Limited and FBNQuest Merchant Bank that Nestoil, along with Neconde Energy Limited and their promoters, Ernest and Nnenna Azudialu-Obiejesi, defaulted on credit facilities amounting to $1.01 billion and N430 billion.
The ruling authorised the appointment of a receiver-manager, Abubakar Sulu-Gambari (SAN), to take possession of Nestoil’s Victoria Island office and associated assets.
In addition, the court issued a Mareva injunction freezing the defendants’ bank accounts and shareholdings across more than 20 financial institutions, including GTBank, Citibank, Fidelity Bank, Stanbic IBTC, and Polaris Bank.
The injunction also empowered the receiver to assume control of Neconde Energy’s interest in Oil Mining Lease (OML) 42, which the firm jointly operates with the Nigerian National Petroleum Company Limited (NNPCL). Both the NNPCL and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) were directed to grant the receiver access to manage production and revenue flows from the oil block.
Despite the legal weight of the case, Nestoil sought to reassure stakeholders of its financial stability and continuity. The company described the enforcement as “a temporary procedural step in a commercial dispute,” expressing optimism that the matter would be resolved soon through lawful and constructive engagement.
