A fresh dispute has erupted between the owners of Nestoil Limited and the court-appointed Receiver-Manager following a new ruling by the Federal High Court in Lagos. The clash occurred at the company’s head office after a judgment delivered on November 20 lifted the previous freezing order placed on Nestoil’s assets. With the court stating that the earlier ex-parte Mareva injunction had lapsed, the company’s owners attempted to regain control of their premises, leading to tension between both parties.
The original injunction, granted in October, froze Nestoil’s assets, bank accounts and shares across multiple financial institutions. It was obtained by FBNQuest Merchant Bank and First Trustees Limited, who are claiming that Nestoil and its affiliate, Neconde Energy, owe more than $1 billion along with hundreds of billions of naira. The court had also appointed Abubakar Sulu-Gambari, SAN, as Receiver-Manager and authorized him to take possession of Nestoil’s Lagos office and other assets.
Justice Daniel Osiagor’s new ruling declared that the ex-parte order expired after 14 days, based on the Federal High Court Civil Procedure Rules. According to the court, once a motion challenging the order was filed, the injunction could not remain indefinitely. This decision opened the door for Nestoil’s owners to push for re-entry into their headquarters.
However, the Receiver-Manager has strongly insisted that the ruling does not invalidate his mandate. In a formal communication to the Inspector-General of Police, he argued that the receivership remains valid because it was executed under a duly filed Deed of Appointment dating back to August 19. He warned the public against dealing with Nestoil or Neconde’s assets without his express authorization, describing such actions as illegal and capable of attracting serious consequences.
The situation is further complicated by the enforcement directives originally given when the Mareva injunction was issued, which involved support from the police, the Nigerian Navy and the State Security Service. Meanwhile, Nestoil is also pursuing a separate case in Abuja, challenging several banks involved in the debt enforcement process. The company maintains that its operations across oil, gas, power and infrastructure continue without disruption despite the legal battles.
This case is significant not only because of the massive financial claims involved, but also because it highlights key issues around ex-parte injunctions and the powers of a Receiver-Manager in high-value commercial disputes. The final outcome could shape how similar cases are handled in the future.