In a significant turn of events, Nigeria’s Supreme Court has hit the pause button on appeals from Nestoil Limited, Neconde Energy Limited, and their founders, Ernest and Nnenna Obiejesi, in a massive and long-running debt dispute.
Instead of hearing the appeal, the nation’s highest court ordered all parties back to the Court of Appeal.
The directive, delivered by a panel led by Justice Inyang Okoro, is to first sort out a major point of confusion: who actually has the legal authority to represent Nestoil and Neconde?
The Court of Appeal must resolve this tangled issue of legal representation and report its findings back to the Supreme Court by January 26, 2026.
This legal drama stems from an enormous alleged debt totaling over $1 billion and N430 billion owed to a consortium of banks, including FBNQuest Merchant Bank and First Trustees.
The battle heated up in late 2025 when the banks secured a Mareva injunction, a powerful court order that froze the assets of the companies and their founders to prevent them from being dissipated.
This led to dramatic scenes, including the court-sanctioned repossession and sealing of Nestoil’s corporate headquarters in Victoria Island, Lagos.
The situation became even more complicated when multiple prominent legal teams, led by Senior Advocates of Nigeria like Wole Olanipekun and Muiz Banire, appeared in court, all claiming to be the rightful counsel for Nestoil and Neconde, creating a conflict the courts must now untangle.
During the recent proceedings, the Supreme Court justices didn’t mince words. They issued a stern warning against using the legal system as a tool to endlessly delay paying off debts.
The court firmly advised that debtors should be encouraged to repay what they owe instead of engaging in what it termed “frivolous legal maneuvers” to frustrate their creditors.
