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Nigerian Banks Take Over Nestoil Over $1 Billion Debt


In what is shaping up to be one of Nigeria’s largest corporate debt crises in years, several Nigerian banks have taken over Nestoil Limited and placed the company under receivership over an alleged debt totaling $1.01 billion and ₦430 billion.

The Federal High Court sitting in Lagos issued the order on October 22, 2025, authorizing First Trustees and its subsidiary FBNQuest Merchant Bank to assume control of Nestoil’s assets. Following the ruling, the Nigeria Police Force sealed off Nestoil’s corporate headquarters located in Victoria Island, Lagos.

Justice D. I. Dipeolu, who presided over the case, also froze the assets of Nestoil, its affiliate Neconde Energy Limited, and the company’s promoters Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

In addition to Nestoil, the injunction extends to multiple financial institutions, including Access Bank, First Bank, Zenith Bank, GTBank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Polaris Bank, and others all directed to freeze related accounts and halt financial dealings pending a full hearing scheduled for next month.

According to court filings, the restrained funds amount to over $1 billion and ₦430 billion, while personal guarantees linked to Mr. Azudialu-Obiejesi cover additional debts across several banks, including ₦366.8 billion, $61.2 million, $152 million, and ₦10.4 billion.

This development marks a major turning point for one of Nigeria’s prominent indigenous oil and gas service companies and raises broader questions about corporate governance, debt exposure, and liquidity challenges in the country’s energy sector.

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