$1bn Debt Scandal: Nestoil Headquarters Sealed as Lenders Move to Recover Funds

The corporate headquarters of Nestoil Limited, located on Victoria Island, Lagos, has been sealed by the police after the engineering and energy giant was reportedly placed under receivership by a consortium of lenders seeking to recover a debt estimated at $1 billion.

A Federal High Court in Lagos, presided over by Justice D. I. Dipeolu, on October 22, 2025, granted a Mareva injunction authorising First Trustees and its subsidiary, FBNQuest Merchant Bank, to take possession of Nestoil’s assets.

The order, obtained against Nestoil Limited, its affiliate Neconde Energy Limited, and the company’s principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi, also lists several financial and corporate institutions as defendants.

Among them are Citibank Limited, CSCS Plc, Fidelity Bank, GTBank, Globus Bank, Keystone Bank, Opay, Polaris Bank, Providus Bank, Stanbic IBTC, Standard Chartered Bank, Sterling Bank, Titan Trust Bank, Unity Bank, and Wema Bank.

Other affected entities include Gobowen Exploration and Production Limited, Hammakopp Consortium Limited, Krawcod Properties Limited, Santa Spring Oil and Gas Limited, Marine & Ocean Infinity Nigeria Limited, and White Dove Shipping Company Limited.

The injunction empowers these institutions to take control of the defendants’ assets pending the determination of the substantive case, slated for hearing in November 2025. It also restrains any dealings involving funds amounting to $1.01 billion and ₦430 billion, representing the alleged indebtedness as of September 30, 2025.

Court filings further indicate additional debts personally guaranteed by Ernest Azudialu-Obiejesi, reportedly totaling ₦366.8 billion, $61.2 million, $152 million, and ₦10.4 billion, owed to Access Bank, First Bank, and Zenith Bank.

In response, Nestoil Group issued a statement clarifying that the matter was a commercial dispute currently before the courts and assured stakeholders that the group remains fully operational.

“The situation relates to a commercial matter currently before the courts, which is being addressed through appropriate legal and regulatory channels,” the company said.

Nestoil added that it continues to cooperate with all relevant authorities and financial partners “to resolve any outstanding matters in a transparent and responsible manner,” expressing confidence in reaching “a fair and lasting resolution.”

The group also stressed that its operations across the oil, gas, power, and infrastructure sectors remain unaffected.

“Nestoil remains fully operational across all business lines. Proactive measures have been implemented to protect our workforce, sustain operations, and uphold our obligations to clients and partners,” the statement added.

Highlighting its three-decade legacy, Nestoil reaffirmed its commitment to integrity, transparency, and professionalism, urging the public and media to rely only on official communications.

“We remain financially strong, operationally stable, and strategically focused despite ongoing legal proceedings,” the statement concluded.