Nestoil placed under receivership over $1 Billion debt

A consortium of Nigerian lenders has placed Nestoil Limited, one of the country’s top oil and gas service firms, under receivership following a debt estimated at $1 billion.

The development came after the Federal High Court in Lagos issued a Mareva injunction, a form of asset-freeze order, on October 22, 2025. The order empowers First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, to assume control of Nestoil’s assets.

Justice D. I. Dipeolu granted the injunction against Nestoil Limited, its affiliate Neconde Energy Limited, and their principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

Following the court ruling, police officers sealed off Nestoil’s corporate headquarters at 41/42 Akin Adesola Road, Victoria Island, Lagos, to enforce the receivership and restrict any movement or disposal of company property.

Eyewitnesses reported that dozens of armed police officers were seen executing the order, while employees were sent out of the premises and left in shock as the possession order was carried out.

Founded in 1991 by Ernest Azudialu-Obiejesi, Nestoil is Nigeria’s largest indigenous Engineering, Procurement, Construction, and Commissioning (EPCC) company in the oil and gas sector.

However, in recent years, the firm has reportedly been battling liquidity challenges linked to mounting debts owed to multiple lenders.