Nestoil insists on full operation despite police shutdown, $1bn debt receivership

Nestoil Group has responded to the police-enforced closure of its Lagos corporate headquarters and the placement of the company under receivership by a consortium of lenders, asserting that the matter is a commercial issue currently before the courts and that the company remains “fully operational across all business lines.”

The shutdown followed a Mareva injunction issued by a federal high court in Lagos on October 22, 2025. The order authorizes First Trustees and its subsidiary, FBNQuest Merchant Bank, to take over the company’s assets due to a reported $1 billion debt.

Justice D. I. Dipeolu issued the injunction against the defendants: Nestoil Limited and its affiliate, Neconde Energy Limited, as well as the principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

The court restrained dealings in assets equivalent to the total indebtedness as of September 30, 2025, which amounted to $1,012,608,386.91 and {N}430,014,064,380.77. The debt also includes other sums guaranteed by Azudialu-Obiejesi, which total more than $366.8b, $61.2m, $152m, and N10.4b. The substantive case is scheduled to be heard in November 2025.

In its reaction, Nestoil Group acknowledged the situation and assured its stakeholders that the company was actively working towards a resolution.

“The situation relates to a commercial matter currently before the courts, which is being addressed through appropriate legal and regulatory channels,” Nestoil Group said.

The company emphasized its commitment to cooperation and transparency with all parties involved in the dispute.

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“The Group continues to cooperate fully with all relevant authorities and financial partners to resolve any outstanding matters in a transparent and responsible manner. Constructive discussions are ongoing, and we remain confident that these engagements will result in a fair and lasting resolution.”

Despite the police action and the court order affecting the headquarters, Nestoil stated that the core of its business remains unaffected.

“Nestoil remains fully operational across all business lines. Our subsidiaries, projects, and commitments in the oil, gas, power, and infrastructure sectors continue without disruption.”

The statement concluded by highlighting measures taken to safeguard its operations and workforce during the legal process.

“Proactive measures have been implemented to protect our workforce, sustain operations, and uphold our obligations to clients and partners.”

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