By Clarion Newschannel TV Online
The corporate headquarters of Nestoil Limited, one of Nigeria’s leading oil and gas service companies, has been sealed off by the Nigeria Police Force following a court order authorizing a consortium of banks to take possession of the company’s assets over an estimated $1 billion debt.
The enforcement action, which took place at the company’s Victoria Island, Lagos premises, follows a Federal High Court order issued October 22nd by Justice D. I. Dipeolu. The court granted a Mareva injunction empowering First Trustees and FBNQuest Merchant Bank, both subsidiaries of First Bank of Nigeria Holdings, to assume control of Nestoil’s assets pending the determination of debt recovery proceedings.
The order also extends to Neconde Energy Limited, Nestoil’s affiliated company, as well as to the firm’s principal promoters, Dr. Ernest Azudialu-Obiejesi and Mrs. Nnenna Obiejesi, who are named co-defendants in the suit.
According to court filings obtained by Clarion Newschannel TV Online, the lenders accused Nestoil and its affiliates of defaulting on a multi-year loan facility amounting to over $1 billion, despite multiple debt restructuring attempts and repayment extensions.
Police officers were stationed at Nestoil’s headquarters to maintain order as the receivership process commenced, effectively barring staff and visitors from entering the premises. Sources at the scene described the development as “tense but orderly.”
The Mareva injunction—a form of asset-freezing order—prevents the defendants from dissipating or transferring their assets, both within and outside Nigeria, until the substantive debt recovery case is concluded.
Efforts to obtain comments from Nestoil management proved unsuccessful, as calls and messages sent to the company’s corporate communications office went unanswered. However, insiders hinted that the company’s legal team is preparing to challenge the receivership order, arguing that negotiations with the lenders were still ongoing before the court action was filed.
Founded by Dr. Ernest Azudialu-Obiejesi, Nestoil has been a major player in Nigeria’s oil and gas engineering, procurement, and construction (EPC) sector for over three decades. The company’s financial challenges, industry analysts say, underscore the growing strain on indigenous oil firms amid fluctuating global crude prices, reduced investments, and rising operational costs.
The development marks one of the largest debt recovery enforcement actions in Nigeria’s recent financial history and is expected to send ripples across the nation’s banking and energy sectors.
Clarion Newschannel TV Online will continue to provide updates as the story unfolds.
Court-Backed Receivership: Police Seal Nestoil Headquarters Over $1 billion debt to Nigerian banks
