BY FRONTLINE REPORTERS
The Supreme Court has overturned a Court of Appeal order that froze the assets of Nestoil Limited, Neconde Energy Limited and two other firms over an alleged $1.1 billion debt owed to FBNQuest Merchant Bank Limited and First Trustees Limited.
In a landmark judgment delivered by a five-member panel, the apex court ruled that the Court of Appeal exceeded its jurisdiction when it granted an ex parte application that effectively restrained Nestoil and related entities.
Delivering the lead judgment, Justice Stephen Adah faulted the appellate court for assuming powers it did not possess, stressing that the matter was not properly before it at the time the controversial order was issued.
The Supreme Court also condemned what it described as a misuse of judicial process by the Court of Appeal, particularly its decision to halt proceedings at the Federal High Court in Lagos while simultaneously granting interim reliefs affecting the parties.
The dispute stems from debt recovery proceedings initiated by a consortium of lenders, including FBNQuest Merchant Bank Limited and First Trustees Limited, over financing arrangements linked to oil assets and operations managed by Nestoil and Neconde Energy.
In October 2025, the Federal High Court in Lagos granted an ex parte Mareva injunction freezing the companies’ assets, bank accounts and shareholdings across more than 20 financial institutions pending the determination of the suit.
However, Nestoil and Neconde challenged the order, arguing that it ceased to have effect after 14 days in line with the Federal High Court Civil Procedure Rules once they filed an application seeking its discharge.
On November 20, 2025, Justice Daniel Osiagor of the Federal High Court agreed with the companies and held that the ex parte order had lapsed by operation of law and was no longer valid.
Despite that ruling, the Court of Appeal, through Justice Yargata Nimpar, on November 29, 2025, granted an interim restorative injunction that returned control of Nestoil’s assets and operations to a receiver-manager appointed by the lenders.
The appellate court further nullified all actions taken by Nestoil after the Federal High Court’s ruling and effectively revived the Mareva injunction.
But in its final determination, the Supreme Court set aside the Court of Appeal’s decision, restoring the legal position established by the Federal High Court and clearing the way for the substantive dispute to continue before the trial court.
The ruling is a major victory for Nestoil and Neconde Energy, as it restores full control of their assets and operations while the underlying debt dispute remains unresolved.
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