The Supreme Court, on Monday, set aside an order of the Court of Appeal that froze the assets of Neconde Energy Limited, Nestoil Limited and two other entities over an alleged $1.1 billion debt dispute involving FBNQuest Merchant Bank Limited and First Trustees Limited.
In a unanimous judgment delivered by a five-member panel led by Justice Stephen Adah, the apex court held that the Court of Appeal exceeded its jurisdiction by granting an ex parte application that effectively restrained the companies’ operations and assets.
Justice Adah faulted the Appellate Court for assuming jurisdiction over a matter that was not properly before it and for issuing injunctive orders against the companies. He further criticised the court for what he described as a misuse of judicial process, particularly after it granted a stay of proceedings in a case pending before the Federal High Court in Lagos.
The dispute arose from debt recovery proceedings initiated by lenders, including FBNQuest Merchant Bank and First Trustees, against Nestoil and Neconde Energy over financing arrangements linked to oil and gas assets and operations.
In October 2025, the Federal High Court in Lagos granted an ex parte Mareva injunction freezing the companies’ assets, bank accounts and shareholdings across more than 20 financial institutions.
However, Nestoil and Neconde challenged the order, arguing that it ceased to have effect after 14 days in line with the Federal High Court Civil Procedure Rules once an application seeking its discharge was filed.
On November 20, 2025, Justice Daniel Osiagor of the Federal High Court ruled that the ex parte order had lapsed by operation of law and was no longer in force.
Despite the ruling, Justice Yargata Nimpar of the Court of Appeal, on November 29, granted an interim restorative injunction that returned control of Nestoil’s assets and operations to a receiver-manager appointed by the lenders. The appellate court also nullified actions taken by Nestoil following the Federal High Court’s decision, effectively restoring the Mareva injunction.
The Supreme Court has now overturned that decision, clearing the way for the substantive dispute to continue before the Federal High Court. The ruling also restores full control of the companies’ assets and operations to Nestoil and Neconde pending the determination of the case.
The judgment marks a significant victory for the oil and gas firms and underscores the apex court’s position on the limits of appellate intervention in matters still pending before a trial court.
