In a dramatic turn of events, Nigerian banks have taken control of Nestoil Limited, one of the country’s leading indigenous oil and gas engineering firms, following a court order over a staggering debt exceeding $1 billion.
Court Orders Asset Freeze and Receivership
On October 22, 2025, the Federal High Court in Lagos issued a Mareva injunction, freezing the assets and bank accounts of Nestoil Limited and its affiliate, Neconde Energy Limited.
The court also appointed First Trustees Nigeria Limited and its subsidiary, FBNQuest Merchant Bank, as receiver-managers to oversee the company’s assets.
The injunction was granted in response to a lawsuit filed by FBNQuest Merchant Bank Limited and First Trustees Limited, alleging that Nestoil and its promoters owed over $1.01 billion and ₦430 billion as of September 30, 2025, in respect of various credit facilities.
Police Seal Nestoil Headquarters
Following the court order, armed police personnel sealed off the corporate headquarters of Nestoil Limited in Victoria Island, Lagos, on October 28, 2025.
The police restricted access to the premises and posted notices of the receivership, effectively taking control of the company’s operations.
Implications for Nigeria’s Oil and Gas Sector
The takeover of Nestoil marks a significant development in Nigeria’s oil and gas sector. Nestoil has been involved in major pipeline and infrastructure projects across the country, and its collapse could have far-reaching effects on the industry.
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The receivership raises questions about the sustainability of indigenous oil and gas companies in Nigeria and the challenges they face in managing large-scale projects and financing.
Looking Ahead
As the receivership process unfolds, stakeholders in Nigeria’s oil and gas sector will be closely monitoring the situation.
The outcome of this case could set a precedent for how similar debt disputes are handled in the future and may influence the strategies of other indigenous companies in the sector.
