A consortium of Nigerian lenders has placed Nestoil Limited, one of Nigeria’s foremost indigenous oil and gas service companies, under receivership following an order of the Federal High Court in Lagos over a debt reportedly estimated at $1 billion.
The receivership, which marks a significant development in Nigeria’s energy and financial sectors, followed a Mareva injunction, a legal instrument used to freeze a debtor’s assets, granted on October 22, 2025, by Justice D. I. Dipeolu.
Court Grants Control to FBNQuest and First Trustees
The order empowers First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, to take possession and assume control of Nestoil’s assets pending the resolution of the debt dispute.
The injunction was issued against Nestoil Limited, its affiliated company Neconde Energy Limited, and their principal promoters, Dr. Ernest Azudialu-Obiejesi and Mrs. Nnenna Obiejesi, restraining them from disposing of or dealing in any of the company’s assets.
Following the court’s directive, law enforcement officers sealed off Nestoil’s corporate headquarters located at 41/42 Akin Adesola Street, Victoria Island, Lagos, to enforce the receivership order and secure company property.
Eyewitnesses reported that employees were asked to vacate the premises as police officers executed the order, effectively restricting access to the building.
Liquidity Challenges and Industry Implications
Founded in 1991 by Dr. Azudialu-Obiejesi, Nestoil has grown into one of Nigeria’s largest Engineering, Procurement, Construction, and Commissioning (EPCC) companies in the oil and gas sector, handling major pipeline and infrastructure projects for leading upstream and downstream operators.
However, in recent years, the company has faced growing liquidity pressures and mounting debt exposure to both local and international lenders, amid tight global oil markets, currency volatility, and delayed project payments.
The receivership marks one of the most high-profile corporate debt enforcement actions in Nigeria’s energy sector in recent times, highlighting the growing strain between lenders and oil service firms struggling with cash flow and dollar-denominated obligations.
What Happens Next
Legal and financial experts say the Mareva injunction effectively restricts Nestoil and its affiliates from transferring or dissipating assets within or outside Nigeria until the court determines the substantive case.
The outcome could set a precedent for future debt recovery efforts in Nigeria’s oil and gas industry, where several indigenous operators have faced balance sheet pressures due to project delays, high-interest loans, and FX exposure.
As of press time, Nestoil has yet to issue an official statement on the court order or provide clarification regarding its restructuring or repayment plans.
Nestoil Limited is part of the Obijackson Group, a conglomerate with interests in oil and gas, power, logistics, and real estate. The company has executed several major projects for the Nigerian National Petroleum Company Limited (NNPCL) and international oil firms and remains a key player in local content development.
