Nestoil Reassures Investors of Financial Stability Amid Ongoing Legal Dispute
Nestoil Group has moved to allay concerns among its partners and investors following recent media reports about enforcement actions against some of its assets, confirming that the issue stems from a commercial dispute currently before the courts.
In a statement issued by its Corporate Communications Department, the company said it is aware of the reports and is actively addressing the matter through the appropriate legal and regulatory channels.
“Nestoil is aware of the reports and ongoing legal processes referenced in the media. The situation relates to a commercial matter currently before the courts, which is being addressed through appropriate legal and regulatory channels,” the Group said.
The company added that it is working closely with the relevant authorities and financial institutions to achieve a fair and lasting resolution.
“The Group continues to cooperate fully with all relevant authorities and financial partners to resolve any outstanding matters in a transparent and responsible manner. Constructive discussions are ongoing, and we remain confident that these engagements will result in a fair and lasting resolution,” the statement continued.
Nestoil also emphasized that its operations across the oil, gas, power, and infrastructure sectors remain fully functional, noting that proactive measures have been taken to ensure business continuity and safeguard its workforce and clients.
“Nestoil remains fully operational across all business lines. Our subsidiaries, projects, and commitments in the oil, gas, power, and infrastructure sectors continue without disruption,” the Group stated.
Reaffirming its commitment to integrity and transparency, Nestoil described these as guiding values that have sustained its operations for over three decades.
“For over three decades, Nestoil has built a reputation as one of Nigeria’s foremost indigenous EPC and energy companies. We remain guided by our core values of resilience, integrity, and transparency, and will continue to conduct our business with professionalism and respect for the rule of law,” it said.
The company further assured stakeholders of its financial and operational stability despite the ongoing proceedings.
“We understand the concerns that recent reports may have generated and wish to assure all stakeholders that Nestoil Group remains financially strong, operationally stable, and strategically focused,” the Group said.
According to reports, Nestoil’s corporate headquarters in Lagos was recently sealed by the police after the company was placed under receivership by a consortium of lenders over debts reportedly exceeding $1 billion.
A Federal High Court in Lagos, presided over by Justice D. I. Dipeolu, had on October 22, 2025, granted a Mareva injunction authorizing First Trustees and its subsidiary, FBNQuest Merchant Bank, to take possession of the company’s assets.
The court order, issued against Nestoil Limited, Neconde Energy Limited, and their promoters—Dr. Ernest Azudialu-Obiejesi and Mrs. Nnenna Obiejesi—restrained dealings in the total indebtedness, estimated at $1.01 billion and ₦430 billion as of September 30, 2025.
The injunction also directed several banks—including Citibank, GTBank, Fidelity Bank, Stanbic IBTC, and others—to freeze the accounts of the defendants.
Additional debts personally guaranteed by Dr. Azudialu-Obiejesi were detailed in the filings, including ₦366.8 billion, $61.2 million, $152 million, and ₦10.4 billion owed to Access Bank, First Bank, and Zenith Bank, respectively.
The substantive case is expected to come up for hearing in November.
