The Economic and Financial Crimes Commission (EFCC) intervention within the debt settlement dispute between native vitality agency Nestoil Limited and a consortium of lenders has yielded further optimistic outcomes, with the corporate paying a further $40 million to the collectors.
The recent cost on 19 October introduced the entire paid to the lenders up to now to $100 million, folks acquainted with the matter advised PREMIUM TIMES.
It marks main progress within the structured compensation plan Nestoil and the lenders agreed to at a gathering earlier organised by the EFCC, which yielded an preliminary cost of $60 million from the oil agency to the banks.
The settlement set out a framework for repaying the excellent debt, primarily based on the events’ agreed phrases and relevant legal guidelines.
The EFCC’s mediation within the dispute centres on sure monetary transactions involving Nestoil, its affiliate Neconde Energy Limited, and the banks.
The lenders welcomed the most recent cost as a key, encouraging improvement and reaffirmed their dedication to continued cooperation with the EFCC and different related stakeholders to guarantee full settlement of the debt.
The EFCC’s media division couldn’t be reached for remark.
Background
The feud between Nestoil and the lenders is an advanced authorized battle that got here to a head on the Supreme Court of Nigeria in June, prompting the court docket to annul a Court of Appeal order freezing the property of Nestoil and Neconde Energy.
The lawsuit seeks to get better money owed of greater than $1 billion and N430 billion allegedly owed by Neconde and Nestoil, in addition to Azudialu Obiejesi and Nnenna Azudialu-Obiejesi, their high promoters.
In October 2025, law enforcement officials performing on an order issued by Dehinde Dipeolu, a choose of the Federal High Court, Lagos Division, sealed Nestoil’s headquarters in Lagos. The order gave FBN Quest Merchant Bank and First Trustees depart to take over Nestoil’s property.
Justice Dipeolu granted a number of orders freezing the defendants’ financial institution accounts and shares held with greater than 20 monetary and different establishments in Nigeria.
The court docket additionally authorised Abubakar Sulu-Gambari (SAN), the receiver/supervisor appointed by the plaintiffs, to take over Nestoil’s headquarters and different recognized property.
Justice Dipeolu additionally directed a number of safety companies to assist implement the receivership.
Following Nestoil’s complaints concerning the proceedings, John Tsoho, the chief choose of the Federal High Court, reassigned the case to one other choose.
On 20 November 2025, J. Osiagor, the brand new Judge, revoked the sooner receivership-enforcement order.
FBN Quest Merchant Bank and First Trustees appealed towards the choice on 22 November 2025.
In November 2025, the Court of Appeal issued a restorative injunction in an ex parte utility filed by the monetary establishments.
The order reversed Justice Osiagor’s resolution and in addition forbade Nestoil, Neconde and their brokers from obstructing the receiver/supervisor pending the listening to of the attraction.
In January, the Supreme Court ordered all of the events within the go well with to return to the Court of Appeal to resolve a serious procedural difficulty.
It held that the attraction court docket had to resolve the difficulty of authorized illustration.
Consequently, in January, the Court of Appeal disqualified Wole Olanipekun, Muiz Banire, and different attorneys showing with them from representing Neconde and Nestoil.
It dominated that the receivership of Mr Sulu-Gambari had suspended Mr Azudialu-Obiejesi’s powers.
But in June, the Supreme Court dominated that the appellate court docket exceeded its authority by issuing an ex parte utility towards the oil corporations.
It dominated that the Court of Appeal assumed jurisdiction and granted an injunction towards Neconde and Nestoil when the dispute was not correctly earlier than the court docket.
It additionally rebuked the decrease court docket for misusing the judicial course of in granting a keep of proceedings on the Federal High Court, Lagos.
The court docket consequently annulled the freezing order on Nestoil’s and Neconde’s property.
Impact of Nestoil debt on banks
“Prior to the Court Action, Nestoil obtained several bilateral loan facilities from eight (8) lenders dating back to 2010 and serially defaulted on all the various repayment obligations,” the consortium of lenders mentioned in a statement following the Supreme Court’s ruling.
READ ALSO: Bayelsa suspends oil firm’s land acquisition over fatal community dispute
“Nestoil subsequently proposed restructuring the bilateral loan facilities to bring the Lenders into a Global Club to ease the administration of the indebtedness. Lenders, in good faith, agreed to this restructuring, but Nestoil has again serially defaulted on its repayment obligations since the restructuring became effective in 2023,” the lenders added.
According to a May press release, Nestoil’s alleged $2 billion distressed mortgage has triggered “a historic balance sheet reset” and “a lack of dividend payments” at some main Nigerian banks.
The assertion listed First Bank, United Bank for Africa, and Access Bank among the many monetary establishments most affected by Nestoil’s dangerous loans.
Discover extra from Premium Times Nigeria
Subscribe to get the most recent posts despatched to your e-mail.
