The Supreme Court has nullified 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 linked to FBNQuest Merchant Bank Limited and First Trustees Limited.
In a decision delivered by a five-member panel, the apex court held that the appellate court exceeded its jurisdiction when it granted an ex parte order against Nestoil Limited.
Justice Stephen Adah, who delivered the lead judgment, faulted the Court of Appeal for entertaining and granting reliefs that, according to him, were not properly before it, particularly the injunction issued against Neconde and Nestoil.
The Supreme Court further criticised the appellate court over what it described as a misuse of judicial process, especially its decision to halt proceedings at the Federal High Court in Lagos.
The dispute arose from a Mareva injunction earlier granted in October 2025 by the Federal High Court in Lagos, which froze the companies’ assets, bank accounts and shares across more than 20 financial institutions. The order followed debt recovery claims filed by lenders, including FBNQuest Merchant Bank Limited and First Trustees Limited, over financing arrangements connected to oil assets and operations.
Neconde and Nestoil had challenged the order, arguing that it automatically lapsed after 14 days in line with the Federal High Court Civil Procedure Rules once a motion to discharge it was filed.
In November 2025, the Federal High Court agreed with the argument, with Justice Daniel Osiagor ruling that the ex parte order had expired by operation of law and was no longer in effect.
However, on November 29, 2025, the Court of Appeal, in a ruling delivered by Justice Yargata Nimpar, issued an interim restorative injunction restoring control of Nestoil’s assets and operations to the receiver-manager appointed by the lenders. The court also set aside steps taken by Nestoil after the November 20 ruling, while maintaining the Mareva injunction.
That decision has now been overturned by the Supreme Court, which set aside the appellate court’s order and directed that proceedings continue at the trial court level, effectively restoring control of the companies to Neconde and Nestoil pending further hearings.