The Digest:
Nigerian banks have taken control of Nestoil Limited, one of the country’s major energy sector players, after the company and its affiliates defaulted on debts totaling over $1 billion. A Federal High Court in Lagos issued a Mareva injunction, authorizing the seizure of assets and freezing of accounts belonging to Nestoil, its parent company Neconde Energy, and their principal promoters, Ernest and Nnenna Obiejesi.
Key Points:
- Nestoil was placed under receivership with over $1 billion and N430 billion in debt.
- A Federal High Court authorized FBNQuest Merchant Bank to take over assets.
- Police sealed Nestoil’s corporate headquarters in Victoria Island, Lagos.
- The court froze assets across 17 Nigerian and international financial institutions.
- Promoter Ernest Azudialu-Obiejesi personally guaranteed over N366.8 billion in loans.
- The substantive case is scheduled for hearing in November 2025.
- The injunction restrains dealings in $1.01 billion and N430.01 billion.
Sources: Daily Post
