The Federal High Court in Lagos has set aside the widely publicized Mareva injunction earlier issued against Nestoil Limited in connection with an alleged $1.01 billion and ₦430 billion debt owed to FBNQuest Merchant Bank Limited and other First Bank subsidiaries. The reversal was delivered on Thursday by Justice Daniel Osiagor, following the transfer of the matter from the former trial judge, Justice Deinde Dipeolu, whose handling of the case came under scrutiny after a petition alleging bias was filed by Nestoil’s Chairman, Ernest Azudialu-Obiejesi.
The ruling was confirmed through a statement issued by Nestoil titled “PUBLIC NOTICE: NESTOIL WINS FIRST BANK ENTITIES/PROXIES IN FEDERAL HIGH COURT.” According to the company, the latest court pronouncement effectively nullifies the earlier freezing order that had locked up its bank accounts, assets, and equity holdings across more than 20 Nigerian financial institutions.
How the Case Returned to Court
The matter resumed before Justice Osiagor after the Chief Judge of the Federal High Court reassigned it in response to the bias petition against Justice Dipeolu. At Thursday’s hearing, counsel to the plaintiffs, Babajide Koku, SAN, informed the court that his clients had filed a Notice of Appeal challenging Justice Dipeolu’s decision to recuse himself from the case on November 7, 2025. He argued that the appeal should automatically halt proceedings until the Court of Appeal issues a decision.
However, Nestoil’s counsel, Dr. Muiz Banire, SAN, countered this position, asserting that a Notice of Appeal does not translate into an automatic stay. He cited Order 32 Rule 1 of the Federal High Court (Civil Procedure) Rules 2025, which governs the issuance and lifespan of preservative orders such as a Mareva injunction.
Supporting Banire’s argument, Chief Wole Olanipekun, SAN, counsel for Neconde Energy Limited—another entity implicated in the alleged debts—emphasized that the Chief Judge possesses statutory powers to transfer any case regardless of its stage. According to him, such administrative decisions are not subject to appeal and therefore cannot stall proceedings.
Other lawyers aligned with the position that the ex parte Mareva injunction had already expired by operation of law and that the matter should commence afresh under the new judge.
Justice Osiagor’s Decision
After considering the arguments, Justice Osiagor ruled that the initial Mareva injunction had automatically lapsed 14 days after a motion challenging it was filed, effectively nullifying its continued enforcement. He further held that the transfer of the matter from Justice Dipeolu to himself was not an appealable decision, emphasizing that filings at the Court of Appeal referring to the former judge did not affect proceedings before him.
According to the judge:
“There is no longer a subsisting ex parte order, having elapsed 14 days from the Motion on Notice challenging it. As the order has expired, the arguments of parties affected by the ex parte order are now moot or academic.”
The case was thereafter adjourned to November 25, 2025, for the hearing of a motion for joinder, and December 12, 2025, for consideration of pending applications.
Background: How the Dispute Started
The dispute traces back to October 22, 2025, when Justice Dipeolu granted a far-reaching Mareva injunction freezing Nestoil’s assets and appointing Abubakar Sulu-Gambari, SAN, as receiver-manager. The injunction empowered the receiver-manager to take possession of Nestoil’s head office on Akin Adesola Street, Victoria Island, Lagos. Law enforcement agencies—including the police, navy, and State Security Service (SSS)—were directed to support enforcement, leading to a police seal-off of the company’s headquarters in late October.
The injunction was sought by FBNQuest Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank, in pursuit of alleged unpaid credit facilities issued to entities within the Obijackson Group, including Nestoil and Neconde Energy. The loans were reportedly secured with oilfield interests, properties, and shares.
As the legal battle intensified, Nestoil also filed a separate application at the Federal High Court in Abuja seeking to vacate the Lagos orders and halt enforcement actions.
What This Means for Nigeria’s Commercial Litigation Landscape
With liabilities exceeding ₦1 trillion when dollar and naira claims are combined, the Nestoil–FBNQuest dispute ranks among the largest commercial litigation cases currently before the Nigerian judiciary. The outcome of the matter could significantly shape future judicial attitudes toward Mareva injunctions, debt recovery, and cross-institutional enforcement involving major corporate borrowers.
As proceedings resume under a new judge, the case is expected to remain a major point of interest for financial institutions, corporate lenders, and regulatory observers watching how Nigerian courts balance creditor rights with procedural fairness in high-value disputes.
