Nigerian oil magnate Ernest Azudialu-Obiejesi is facing a major financial setback as a receiver-manager has regained control of Nestoil Tower in Victoria Island, Lagos, following a Court of Appeal ruling that favoured the lenders.
The move comes after the Court of Appeal overturned earlier Federal High Court orders, allowing a syndicate of banks to enforce claims tied to alleged debts of approximately $1.01 billion and ₦430 billion as of September 30, 2025.
The financial dispute centers on Nestoil Limited and its affiliate Neconde Energy, with additional liabilities personally guaranteed by Azudialu-Obiejesi running into hundreds of millions of dollars and naira.
The lenders’ consortium, which has grown over the years, includes major financial institutions such as Access Bank, Afrexim Bank, Ecobank, First Bank, FCMB, Union Bank, UBA, Zenith Bank, Fidelity Bank, Mauritius Commercial Bank, and Glencore UK. These debts arose from syndicated loan facilities used to fund acquisitions, capital projects, and Neconde’s stake in Oil Mining Lease 42 in the Niger Delta, as well as high-profile real estate like Nestoil Tower.
The appeal court ruling effectively reinstated the receiver-manager, halting further proceedings at the lower court, and reversed a November 20 order that had briefly restored control to Nestoil and its promoters. Analysts say the financial strain reflects broader challenges for indigenous oil companies, particularly following oil price fluctuations and rising operating costs.
Nestoil has maintained that it is not insolvent, asserting in statements and court filings that it remains financially stable and fully operational. The company has requested a forensic reconciliation of its loan accounts, arguing that the figures presented by lenders are inflated and contested.
The recent development underscores the growing complexities in Nigeria’s oil sector, where high-stakes financing and syndicated debts increasingly intersect with operational risks, leaving even prominent business figures like Azudialu-Obiejesi vulnerable to court-enforced interventions.
