Setback for Nestoil as Supreme Court Sends Debt Case Back to Appeal Court

The Supreme Court has directed Nestoil Limited, Neconde Energy Limited, and their key executives, Ernest and Nnenna Obiejesi, to return to the Court of Appeal to resolve a procedural dispute in a high-stakes debt recovery case.

In a ruling delivered by a five-member panel led by Justice Inyang Okoro, the apex court instructed the Court of Appeal to first determine the controversy over the competence of legal representatives before reporting back to the Supreme Court on 26 January 2026. Justices Haruna Jauro, Helen Ogunwumiju Sankey, Mohammed Adumehin, and Sadiq Umar joined the lead ruling.

The dispute concerns ongoing debt recovery proceedings involving Nestoil and Neconde, two major players in Nigeria’s oil sector, and the high-profile legal teams acting on their behalf.

During the proceedings, the Supreme Court criticized what it described as unnecessary and frivolous appeals, urging debtors to prioritize settling obligations over prolonging litigation through technical challenges.

A key issue is the legitimacy of counsel appearing for the parties. Wole Olanipekun, SAN, appeared for Neconde, while Muiz Banire, SAN, represented Nestoil. Their authority was challenged by rival legal teams, including Ayo Olorunfemi, SAN, and Ayoola Ajayi, SAN.

Ernest Azudialu-Obiejesi was represented by Chinonye Obiagwu, SAN, while Nnenna Obiejesi’s team included Kehinde Ogunwumiju, SAN, Ademola Abimbola, SAN, and Chikasolu Ojukwu, SAN. The court-appointed Receiver/Manager, Abubakar Sulu-Gambari, SAN, was also present. Creditor institutions FBNQuest Merchant Bank and First Trustees were represented by Babajide Koku, SAN, Victor Ogude, SAN, and Omosanya Popoola, SAN, alongside a team of junior counsel.

Legal analysts note that Monday’s ruling signals the Supreme Court’s determination to prevent procedural maneuvers aimed at delaying repayment, particularly in high-value commercial disputes.

The case will now proceed in the Court of Appeal, which must first resolve the dispute over legal representation before the Supreme Court resumes consideration.