One of Nigeria’s most closely watched corporate battles took a dramatic turn this week after the Supreme Court overturned orders that froze the assets of Nestoil Limited and Neconde Energy, handing a significant victory to oil entrepreneur Ernest Azudialu-Obiejesi in a dispute involving more than $1.1 billion in alleged debt.
The ruling represents the latest chapter in a legal and commercial fight between companies controlled by Azudialu-Obiejesi and a consortium of lenders led by FBNQuest Merchant Bank and First Trustees, institutions within the FirstBank ecosystem whose parent company, Femi Otedola, chairs.
At stake is far more than a debt recovery case.
The dispute touches on control of strategic oil assets, the powers of creditors to enforce security over large businesses, and the future of one of Nigeria’s most prominent indigenous energy groups at a time when local operators are assuming greater control of oil assets previously owned by international majors.
A five-member panel of the apex court ruled that the Court of Appeal exceeded its powers when it granted sweeping ex parte orders against Nestoil and Neconde, effectively restoring control of the companies and their operations while the substantive case continues before the Federal High Court.
