Nestoil Limited has formally challenged FBNQuest Merchant Bank over what it describes as the bank’s refusal to hand over critical bank statements tied to a disputed loan facility of more than US $1.01 billion (N430 billion).
The dispute centres on a syndicated loan for which FBNQuest served as Facility Agent. According to court filings, Nestoil sent repeated emails between February and June 2024 requesting statements of account from FBNQuest and the other lenders. Despite these requests, no statements were provided.
Nestoil contends that the amounts quoted as its debt are incorrect and lack any proper basis. Only a proper forensic reconciliation would reveal whether we are indebted and the precise amount, if any.
FBNQuest, instead of engaging in full disclosure, is said to have obtained ex-parte Mareva injunctions and receivership orders freezing assets and shares of Neconde Energy Limited, a firm producing on OML 42, allegedly bypassing proper process and pressuring the oil-producer’s operations.
Observers say the timing of the bank’s actions is curious: Neconde’s production had begun improving significantly, generating fresh revenue after years of under-performance. Some allege the move is less about loan recovery and more about control of a profitable oil asset.
Beyond the immediate corporate drama, the dispute raises serious questions about the role of facility agents and trustees in Nigeria’s financial system. Experts warn the absence of transparency and accountability in such high-stakes loan arrangements could undermine investor confidence and slow the inflow of foreign capital into key sectors.
The clash threatens to dampen investor sentiment in Nigeria’s energy-financing space. If facility agents like FBNQuest can wield sweeping asset-freeze powers without requisite transparency, lenders may raise risk premiums or avoid syndicated deals in the country altogether, raising borrowing costs for large indigenous firms and stalling upstream oil and gas investment.
