Nestoil Placed Under Receivership by Banks Over $1 Billion Debt
Lagos authorities have sealed the corporate headquarters of Nestoil Limited in Victoria Island following a court-ordered receivership over the company’s reported $1 billion debt.
A federal high court in Lagos, on 22 October 2025, granted an injunction allowing First Trustees and FBNQuest Merchant Bank to take control of Nestoil’s assets.
The Mareva order targets Nestoil, its affiliate Neconde Energy Limited, and principal promoters Ernest Azudialu-Obiejesi and Nnenna Obiejesi.
The injunction lists several financial institutions, including Citibank, Fidelity Bank, Guaranty Trust Bank, Polaris Bank, Standard Chartered Bank, and Stanbic IBTC, directing them to freeze the company’s assets pending the substantive case scheduled for next month.
The total indebtedness subject to the order stands at $1,012,608,386.91 and N430,014,064,380.77 as of 30 September 2025. Additional personal guarantees by Azudialu-Obiejesi include over N366.8 billion, $61.2 million, $152 million, and N10.4 billion owed to Access Bank, First Bank, and Zenith Bank.
Founded in 1995, Nestoil Limited has been a major player in Nigeria’s oilfield services sector, providing drilling, production support, and logistics solutions to both local and international oil companies.
The company has historically contributed significantly to the country’s oil exploration and development efforts, with operations spanning multiple states and offshore locations.
Industry analysts note that receivership in Nigeria’s oil services sector, while not uncommon, often signals challenges in managing debt amid fluctuating oil prices and rising operational costs.
Nestoil’s case reflects broader concerns in the sector, where companies face high leverage, delayed payments from clients, and intense competition.
The intervention by lenders aims to protect their interests and ensure that company assets are preserved while the courts determine the full scope of repayment obligations.
Observers say the outcome of the legal proceedings could have significant implications for investor confidence in Nigeria’s oil and gas industry.
