Federal High Court Lifts Asset Freeze, Restores Control to Nestoil in $1 Billion Debt Dispute,

The Federal High Court in Lagos on Thursday, November 20, 2025, lifted the Mareva injunction that had frozen Nestoil Limited’s assets and those of its directors in an alleged $1 billion debt dispute. Justice Daniel Osiagor, who assumed responsibility for the case following its transfer from Justice Dehinde Dipeolu, ruled that the ex parte order had expired 14 days after a motion to set it aside was filed, in accordance with Federal High Court rules.

The injunction, originally granted on October 22, 2025, had prohibited Nestoil, its affiliate Neconde Energy Limited, and the company’s promoters, Dr. Ernest Azudialu-Obiejesi and Nnenna Obiejesi, from accessing or disposing of funds, shares, and other assets held in over 20 financial institutions. It also authorized FBNQuest Merchant Bank Limited and First Trustees Limited, acting for a consortium of creditor banks, to take possession of Nestoil’s assets under receivership.

At the hearing, Babajide Koku, SAN, representing the plaintiffs, noted that a Notice of Appeal had been filed challenging Justice Dipeolu’s November 7 decision to recuse himself and requested that proceedings be suspended pending the appeal. Nestoil’s counsel, Dr. Muiz Banire, argued that filing an appeal does not automatically halt proceedings, citing Order 32 Rule 1 of the Federal High Court (Civil Procedure) Rules 2025, and emphasized that the court retains inherent power to make necessary preservative orders.

Chief Wole Olanipekun, SAN, representing Neconde Energy Limited, highlighted the statutory authority of the Chief Judge under Section 22(1) of the Federal High Court Act to transfer cases at any stage. He explained that following such transfers, hearings must commence anew and prior rulings cannot bind the new judge. He also referenced judicial precedents cautioning against broad Mareva injunctions that can impede business operations.

Counsel for the other defendants, Chinonye Obiagwu, SAN, and Kehinde Ogunwumiju, SAN, argued that the ex parte injunction could not survive the transfer. They pointed out that under Federal High Court rules, an ex parte order automatically lapses 14 days after a motion to discharge it is filed. They further contended that the motion filed on October 30 had rendered the injunction legally spent.

Justice Osiagor ruled that the Mareva injunction had expired 14 days after the filing of the motion to set it aside, rendering any reliance on the order moot. The court also confirmed that the transfer of the matter to a new judge is not subject to appeal and that proceedings would continue regardless of filings at the Court of Appeal referring to the previous judge.

The court directed that a Motion for Joinder would be heard on November 25, 2025, and pending applications would be addressed on December 12, 2025. The decision restores Nestoil Limited’s access to and control of its assets, providing the company and its affiliates a procedural resolution in the ongoing dispute with FBNQuest Merchant Bank Limited and First Trustees Limited.