Heavily armed police officers have sealed off the headquarters of Nestoil Limited in Victoria Island, Lagos, enforcing a Federal High Court order over an alleged $1.01 billion (₦430 billion) debt owed to subsidiaries of First Bank of Nigeria.
Key Highlights
Court Order: Justice D.I. Dipeolu of the Federal High Court, Lagos, issued the ruling on October 22, 2025 (Suit No. FHC/L/CS/2127/2025), authorizing First Trustees Limited and FBNQuest Merchant Bank to take possession of Nestoil’s assets.
Asset Freeze: The Mareva injunction covers assets belonging to Nestoil Limited, Neconde Energy Limited, and their promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.
Affected Assets:
• Bank accounts in over 20 financial institutions, including Citibank, GTBank, Fidelity, and Stanbic IBTC.
• Shares and investments with CSCS and subsidiaries such as Gobowen E&P and Krawcod Properties.
• Oil Mining Lease (OML) 42, a major Delta State block producing up to 345,000 barrels per day.
• The company’s Victoria Island headquarters and other assets within and outside Nigeria.
Security Backing: The enforcement operation had the support of the Nigeria Police, Nigerian Navy, and State Security Service (DSS). The NUPRC and NNPCL were directed to grant the court-appointed receiver access to OML 42 operations and revenue streams.
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Court-Enforced Takeover Turns Corporate Drama
Witnesses described the takeover as tense but orderly. Graffiti reading “POSSESSION TAKEN BY COURT ORDER” was boldly painted across the white façade of Nestoil’s offices, while official FIRS “SEALED” posters flanked the gates. Court bailiffs, alongside receiver-manager Abubakar Sulu-Gambari (SAN), oversaw the execution as officers stood guard.
Inside the Debt That Shook Nigeria’s Oil Powerhouse
The staggering $1.012 billion and ₦430 billion debt reportedly originated from multiple credit facilities extended by FBNQuest Merchant Bank and First Trustees. Insiders said Azudialu-Obiejesi personally guaranteed additional loans from Access Bank, Zenith Bank, and First Bank, totaling more than ₦366.8 billion and $213.2 million.
Once celebrated as a symbol of indigenous success, Nestoil made headlines in 2014 when it acquired OML 42 for $300 million through its subsidiary Neconde Energy, marking one of the largest indigenous oil transactions in Nigeria’s history. Industry analysts say signs of financial distress appeared as early as 2018, when the firm attempted to sell part of its stake.
Who Is Ernest Azudialu-Obiejesi?
Born in Okija, Anambra State, the 65-year-old Ernest Azudialu-Obiejesi, known across the oil sector as “Obijackson”, rose from a family trading background to become a billionaire industrialist. A graduate of the University of Benin and University of Nigeria, Nsukka, he founded Nestoil Group in 1990, growing it into a $2 billion engineering and oil services empire.
His philanthropic arm, the Obijackson Foundation, supports education and healthcare, including the Obijackson Women and Children Hospital. In 2014, he received the Order of the Federal Republic (OFR) for contributions to national development.
Neither Nestoil nor its executives have issued an official statement. However, sources close to the company suggest that debt restructuring talks had been underway before the court order. Analysts predict that the legal battle could reshape Nigeria’s energy finance landscape, as banks tighten lending conditions amid a weakening naira and volatile oil prices.
For now, Nestoil’s once-commanding empire stands on the brink, its fate resting on the outcome of court proceedings and the potential sale or recovery of its prized OML 42 asset.
