...Consortium of Nigerian lenders obtains injunction to secure company assets

LAGOS -- The Federal High Court in Lagos has granted an order empowering a consortium of Nigerian lenders to take possession of assets belonging to Nestoil Limited, one of the country's leading indigenous oil and gas service companies, pending the resolution of a loan dispute reportedly valued at about $1 billion.

The order, issued on October 22, 2025, by Justice D. I. Dipeolu, followed an application by First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, who are acting on behalf of the lending consortium.

According to the court documents, the order granted a Mareva injunction -- a temporary measure that restrains the transfer or disposal of assets -- covering Nestoil Limited, its affiliate Neconde Energy Limited, and associated parties.

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Following the ruling, according to TheCabel, enforcement officers, accompanied by the police, were observed at 41/42 Akin Adesola Street, Victoria Island, where Nestoil's corporate headquarters is located. The premises were sealed as part of measures to secure the assets under receivership.

Staff and visitors were asked to vacate the premises during the exercise, which took place under the supervision of court-appointed representatives and law enforcement personnel.

Founded in 1991 by Dr. Ernest Azudialu-Obiejesi, Nestoil has grown into one of Nigeria's largest indigenous Engineering, Procurement, Construction, and Commissioning (EPCC) firms serving the oil and gas industry.

While details of the loan transactions and negotiations between the parties remain undisclosed, financial analysts say the development highlights the growing need for debt restructuring mechanisms within the nation's oil and gas services sector, which has faced significant financial strain in recent years.

Efforts to obtain comments from Nestoil representatives and the lenders were ongoing as of press time.