Nestoil also stated that any declaration that the receiver/manager is free to exercise unrestrained power over the company and Neconde or their assets is inaccurate, misleading, and is against current legal realities.
Nestoil Limited has engaged in a verbal clash with Abubakar Sulu-Gambari, the receiver/manager appointed over the company and Neconde Energy in respect of an alleged debt default.
The oil firm, in a rebuttal to a recent press statement issued by the receiver/manager, noted that although Mr Sulu-Gambari admitted that the court voided an earlier ruling of the Court of Appeal which granted an injunctive relief in his favour, he directed the public to proceed in a manner showing that the apex court’s decision had no effect on his exercise of power as receiver/manager.
“Now that he has completely lost all judicial cover for his purported receivership, he has resorted to assuming the status of interpreter of the law to hoodwink the general public,” Nestoil said in the statement.
“Mr Sulu-Gambari has deliberately concealed or failed to disclose that the exercise of any powers purportedly arising from the alleged Deeds of Appointment has since been restrained, suspended, and placed in abeyance by subsisting orders of the Federal High Court, Abuja Division, presided over by Hon. Justice P. O Lifu in Suit No. FHC/ABJ/CS/2534/2025 since December 1, 2025.”
According to Nestoil, the Supreme Court in its ruling on 10 April 2026, decided that the authority of the receiver to act is the subject of interrogation of the case filed by its appointors at the Federal High Court and, for that reason, cannot claim to exercise powers of a receiver in the face of such suit.
Nestoil also stated that any declaration that the receiver/manager has the freedom to exercise unrestrained power over the company and Neconde or their assets is inaccurate, misleading and is against current legal realities.
The Supreme Court had on Monday annulled an order issued by the Court of Appeal, freezing the assets of Neconde, Nestoil, and their principal promoters over an alleged loan default.
It ruled that the appellate court went beyond the limits of its power in issuing an ex parte application against the two oil firms.
Stephen Adah, the presiding judge, stated that the appeal court assumed jurisdiction and issued an injunction against Neconde and Nestoil when the dispute was not properly before the court.
The Supreme Court also criticised the lower court for misusing the judicial process in granting a stay of proceedings at the Federal High Court, Lagos.
The lawsuit resulted from efforts by FBN Quest Merchant Bank and First Trustees to recover debts totalling over $1 billion and N430 billion allegedly owed by Neconde and Nestoil as well as Azudialu Obiejesi and Nnenna Azudialu-Obiejesi, their principal promoters.
To ease the recovery of the debt, the financial institutions appointed Abubakar Sulu-Gambari as receiver/manager over Nestoil and Neconde.
Justice Deinde Dipeolu of the Federal High Court, Lagos, subsequently issued a Mareva injunction, freezing the company’s accounts and shareholdings in over 20 financial and corporate institutions. He also directed multiple security agencies to help in enforcing the receivership.
The order empowered the receiver/manager to take possession of Nestoil’s headquarters and other assets, and assume control of Neconde’s interest in OML 42, the oil block it operates jointly with NNPC Limited.
The receiver took possession of Nestoil’s head office on 22 October 2025.
Amid allegations of favouritism and misconduct by Nestoil and Neconde, John Tsoho, the chief judge of the Federal High Court, reassigned the case to another judge.
On 20 November 2025, the new judge, Justice J. Osiagor, rescinded the earlier receivership-enforcement order.
FBN Quest Merchant Bank and First Trustees appealed against the decision on 22 November 2025.
On 29 November 2025, the Court of Appeal, in a ruling delivered by Justice Yargata Nimpar, issued a restorative injunction in an ex parte application filed by the financial institutions.
The order reversed Justice Osiagor’s decision. It also forbade Nestoil, Neconde and their agents from obstructing the receiver/manager pending the hearing of the appeal.
On 12 January, the Supreme Court directed all the parties in the suit to return to the Court of Appeal for resolution of a major procedural issue.
It held that the appeal court had to resolve the issue around legal representation in the case.
The Court of Appeal, on 23 January, disqualified Wole Olanipekun, Muiz Banire, and other lawyers appearing with them from representing Neconde and Nestoil.
It ruled that the receivership of Mr Sulu-Gambari had suspended Mr Azudialu-Obiejesi’s powers.
