Nigerian banks have taken control of Nestoil Limited, one of the country’s major indigenous oil and gas engineering firms, after the company defaulted on debts totaling over $1 billion. A Federal High Court in Lagos issued a Mareva injunction on October 22, 2025, authorizing First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, to seize and take control of Nestoil's assets and freeze its accounts.
The injunction covers Nestoil Limited, its affiliate Neconde Energy Limited, and their principal promoters, Ernest and Nnenna Azudialu-Obiejesi. The court also froze assets held in over 20 Nigerian and international financial institutions. Police officers sealed Nestoil’s corporate headquarters in Victoria Island, Lagos, to enforce the court order.
The total indebtedness as of September 30, 2025, stood at about $1.01 billion and ₦430 billion. The debt is tied to multiple credit facilities, with significant portions personally guaranteed by the Obiejesi family.
The court appointed a receiver-manager, Abubakar Sulu-Gambari (SAN), to take possession of the company’s assets, including its stake in Oil Mining Lease (OML) 42, which is operated jointly with the Nigerian National Petroleum Company Limited (NNPCL).
Security agencies, including the Nigerian Police Force, Navy, and State Security Service, were directed to assist in securing the premises and aiding the enforcement of the takeover.
The case highlights ongoing financial pressures in Nigeria’s oil sector and the challenges faced by indigenous companies amid volatile global energy markets and local fiscal constraints.