Nestoil Limited has instituted proceedings at the Federal High Court, Abuja, against eight Nigerian banks and the African Export-Import Bank (Afreximbank), seeking restraining orders to halt receivership actions triggered by a Notice of Default under a Common Terms Agreement (CTA).
At Wednesday’s sitting before Justice Mohammed Umar, legal teams representing both sides appeared, with Nestoil’s lead counsel, Mofesomo Tayo-Oyetibo, SAN, moving a motion on notice dated 28 October 2025. The application sought interlocutory injunctions to restrain the defendants, their agents, or receivers from enforcing the May 30, 2025 Notice of Default, commencing receivership, or publishing claims of indebtedness against the company.
Tayo-Oyetibo argued that the banks were making “wrongful demands and threats”, despite Nestoil’s substantial performance under the CTA and repayment of hundreds of millions of dollars. He contended that the respondents’ reliance on “opaque computed figures” without providing account statements was unlawful and oppressive.
In opposition, Babajide Okun, SAN, urged the court to strike out the suit, describing it as incompetent and an abuse of process. He argued that the matter constituted a multiplicity of actions, since the same parties and subject matter were already pending before the Federal High Court, Lagos Division. He further contended that Nestoil, being under receivership, lacked locus standi to initiate fresh proceedings without the consent of the appointed receiver/manager.
At the resumed hearing, B.O. Ofulue appeared for the banks, while Tayo-Oyetibo pressed for consolidation of processes to enable oral argument. Ofulue countered that Nestoil ought to have challenged the Lagos receivership order rather than filing a fresh suit in Abuja. Justice Umar cautioned counsel against delving into substantive issues at this stage and adjourned the matter to 4 December 2025 for hearing.
The Abuja proceedings follow enforcement actions in Lagos, where Justice D.I. Dipeolu had earlier granted a Mareva injunction on 22 October 2025, authorising the takeover of Nestoil’s assets, its affiliate Neconde Energy Limited, and promoters Ernest and Nnenna Azudialu-Obiejesi, across more than 20 financial institutions. Police officers subsequently sealed Nestoil’s Victoria Island headquarters, with markings indicating “Possession taken by court.” The Lagos case is adjourned to 7 November 2025 for hearing of the substantive motion.
