The Supreme Court has set aside an order of the Court of Appeal freezing the assets of Neconde Energy Limited, Nestoil Limited and two others, over an alleged $1.1 billion indebtedness to FBNQuest Merchant Bank Limited and First Trustees Limited. In a judgment delivered by a five-man panel, the apex court held that the three-member panel of the appellate court went beyond its powers in granting an ex parte application against Nestoil Limited.
READ ALSO: ADC Leadership Crisis: Supreme Court Vacates Status Quo Ante Bellum Order Justice Stephen Adah, in the lead judgment, criticised the appellate court for assuming jurisdiction and issuing an injunction against Neconde and Nestoil, when the matter was not properly before the court.
The Supreme Court also accused the appellate court of misuse of the judicial process, particularly when the Court of Appeal issued a stay of proceedings at the Federal High Court, Lagos. In October 2025, the Federal High Court in Lagos granted an ex parte Mareva injunction freezing the companies’ assets, bank accounts, and shares across more than 20 financial institutions.
This followed a dispute based on debt recovery proceedings instituted by lenders, including FBNQuest Merchant Bank Limited and First Trustees Limited, against Nestoil and Neconde Energy over financing arrangements tied to oil assets and operations. Neconde and Nestoil challenged the order, arguing that it automatically lapsed after 14 days under the Federal High Court Civil Procedure Rules once a motion to discharge it was filed.
In November 2025, Justice Daniel Osiagor held that the ex parte order had expired by operation of law and was no longer subsisting. But on November 29, 2025, Justice Yargata Nimpar of the Court of Appeal granted an interim restorative injunction returning the control of Nestoil’s assets and operations to the receiver-manager appointed by the banks.
The court ruled that all steps Nestoil took after the November 20 ruling were set aside. The Mareva injunction continued to operate.