One of Nigeria’s biggest oil and gas service companies, Nestoil Limited, has been taken over by its lenders. This sudden change followed a court order related to a huge debt of over $1 billion.
Police officers sealed off Nestoil’s main office in Lagos. The officers were there to make sure the lenders could take control of the company’s assets. Reporters saw many armed police at the Victoria Island headquarters on the day of the takeover.
The Court’s Order
The development began with a ruling from the Federal High Court in Lagos on October 22, 2025. Justice D. I. Dipeolu issued a Mareva injunction, which is a special order used to freeze assets. This ruling allowed a group of lenders to place the company under receivership.
First Trustees and its partner, FBNQuest Merchant Bank, were authorised by the court to take possession of the company. The court order was issued against Nestoil, its linked company Neconde Energy Limited, and the principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.
Massive Financial Scope
The court order specifically blocked all dealings involving $1.01 billion and N430 billion, the total amount the company owed as of September 30, 2025. This massive debt represents one of the largest corporate loan defaults in the country’s history.
Nestoil, which started in 1991, is known as Nigeria’s largest indigenous company for oil and gas construction and engineering (EPCC). Despite its leading status, the company has faced significant financial difficulties in recent years.
The debt issue goes even deeper. The principal promoter, Mr. Azudialu-Obiejesi, had personally guaranteed other large debts. This includes over N366.8 billion, $61.2 million, $152 million, and N10.4 billion owed separately to major banks like Access Bank, First Bank, and Zenith Bank.
Impact on Staff and Banks
The immediate human cost was clear at the headquarters. Staff members were asked to leave the premises. They “all watched in bewilderment as the order of possession was being effected,” showing the sudden shock of the event.
The court action is a victory for the banks seeking to recover their money. Many other banks were listed as affected parties in the case and are now restricted from dealing with the company’s assets. These lenders include: Citibank, Fidelity Bank, Guaranty Trust Bank, Globus Bank, Keystone Bank, Polaris Bank, Providus Bank, Stanbic IBTC Bank, Standard Chartered Bank, Sterling Bank, Titan Trust Bank, Unity Bank, and Wema Bank.
The court has frozen assets in all these institutions until the main case is heard next month.
