The Economic and Financial Crimes Commission (EFCC) intervention within the debt settlement dispute between native vitality agency Nestoil Limited and a consortium of lenders has yielded further constructive outcomes, with the corporate paying a further $40 million to the collectors.
The contemporary cost on 19 October introduced the overall paid to the lenders to date to $100 million, individuals accustomed to the matter advised PREMIUM TIMES.
It marks main progress within the structured reimbursement plan Nestoil and the lenders agreed to at a gathering earlier organised by the EFCC, which yielded an preliminary cost of $60 million from the oil agency to the banks.
The settlement set out a framework for repaying the excellent debt, primarily based on the events’ agreed phrases and relevant legal guidelines.
The EFCC’s mediation within the dispute centres on sure monetary transactions involving Nestoil, its affiliate Neconde Energy Limited, and the banks.
The lenders welcomed the most recent cost as a key, encouraging improvement and reaffirmed their dedication to continued cooperation with the EFCC and different related stakeholders to guarantee full settlement of the debt.
The EFCC’s media division couldn’t be reached for remark.
Background
The feud between Nestoil and the lenders is an advanced authorized battle that got here to a head on the Supreme Court of Nigeria in June, prompting the courtroom to annul a Court of Appeal order freezing the belongings of Nestoil and Neconde Energy.
The lawsuit seeks to recuperate money owed of greater than $1 billion and N430 billion allegedly owed by Neconde and Nestoil, in addition to Azudialu Obiejesi and Nnenna Azudialu-Obiejesi, their high promoters.
In October 2025, law enforcement officials performing on an order issued by Dehinde Dipeolu, a decide of the Federal High Court, Lagos Division, sealed Nestoil’s headquarters in Lagos. The order gave FBN Quest Merchant Bank and First Trustees go away to take over Nestoil’s belongings.
Justice Dipeolu granted a number of orders freezing the defendants’ financial institution accounts and shares held with greater than 20 monetary and different establishments in Nigeria.
The courtroom additionally authorised Abubakar Sulu-Gambari (SAN), the receiver/supervisor appointed by the plaintiffs, to take over Nestoil’s headquarters and different recognized belongings.
Justice Dipeolu additionally directed a number of safety businesses to assist implement the receivership.
Following Nestoil’s complaints concerning the proceedings, John Tsoho, the chief decide of the Federal High Court, reassigned the case to one other decide.
On 20 November 2025, J. Osiagor, the brand new Judge, revoked the sooner receivership-enforcement order.
FBN Quest Merchant Bank and First Trustees appealed in opposition to the choice on 22 November 2025.
In November 2025, the Court of Appeal issued a restorative injunction in an ex parte software filed by the monetary establishments.
The order reversed Justice Osiagor’s determination and in addition forbade Nestoil, Neconde and their brokers from obstructing the receiver/supervisor pending the listening to of the enchantment.
In January, the Supreme Court ordered all of the events within the swimsuit to return to the Court of Appeal to resolve a serious procedural subject.
It held that the enchantment courtroom had to resolve the problem of authorized illustration.
Consequently, in January, the Court of Appeal disqualified Wole Olanipekun, Muiz Banire, and different legal professionals showing with them from representing Neconde and Nestoil.
It dominated that the receivership of Mr Sulu-Gambari had suspended Mr Azudialu-Obiejesi’s powers.
But in June, the Supreme Court dominated that the appellate courtroom exceeded its authority by issuing an ex parte software in opposition to the oil companies.
It dominated that the Court of Appeal assumed jurisdiction and granted an injunction in opposition to Neconde and Nestoil when the dispute was not correctly earlier than the courtroom.
It additionally rebuked the decrease courtroom for misusing the judicial course of in granting a keep of proceedings on the Federal High Court, Lagos.
The courtroom consequently annulled the freezing order on Nestoil’s and Neconde’s belongings.
Impact of Nestoil debt on banks
“Prior to the Court Action, Nestoil obtained several bilateral loan facilities from eight (8) lenders dating back to 2010 and serially defaulted on all the various repayment obligations,” the consortium of lenders mentioned in a press release following the Supreme Court’s ruling.
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“Nestoil subsequently proposed restructuring the bilateral loan facilities to bring the Lenders into a Global Club to ease the administration of the indebtedness. Lenders, in good faith, agreed to this restructuring, but Nestoil has again serially defaulted on its repayment obligations since the restructuring became effective in 2023,” the lenders added.
According to a May press launch, Nestoil’s alleged $2 billion distressed mortgage has triggered “a historic balance sheet reset” and “a lack of dividend payments” at some main Nigerian banks.
The assertion listed First Bank, United Bank for Africa, and Access Bank among the many monetary establishments most affected by Nestoil’s unhealthy loans.
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