A disagreement over authorised legal representatives of respondents has stalled proceedings at the court of appeal in Lagos in the suit filed by FBN Merchant Bank Ltd and First Trustees Ltd against a ruling of a federal high court.
On Thursday, Yargata Nimpara, presiding judge at the court, held that the issue of legal representation of Nestoil Limited and Neconde Energy Limited (the respondents) must be resolved before the court could hear the matter.
As a result, In effect, the accounts of Nestoil, Neconde, Ernest Azudialu-Obiejesi and Nnenna Obiejesi remain frozen while Nestoil/Neconde’s 45 percent interest in OML 42 JV remain under Receivership.
Nestoil was placed under receivership by a consortium of lenders over an alleged debt of $1.01 billion and N430 billion following an order of a federal high court.
However, Nestoil, its affiliate, Neconde Energy, and their promoters — Ernest Azudialu-Obiejesi and Nnenna Obiejesi — obtained another high court injunction directing the receiver to suspend further action.
The receiver retook possession of the property after the court of appeal granted a “restorative injunction” in an ex-parte application filed by FBN Merchant Bank and First Trustees.
The court scheduled the hearing of the motion on notice for December 4, 2025.
At the hearing on Thursday, confusion broke out after the court directed counsel to announce their appearances.
Ayoola Ajayi, senior advocate of Nigeria (SAN), announced appearance for the first respondent (Nestoil Limited), while Ayo Olorunfemi, SAN, announced appearance for the second respondent (Neconde Energy Limited).
In addition, Muiz Banire, SAN, and Wole Olanipekun, SAN — who represented Nestoil and Neconde respectively at the lower court — also announced appearances for both firms.
On the other hand, Babajide Koku, SAN, appeared for the appellants alongside Kunle Ogunba, SAN.
Speaking on the matter, Ajayi argued that it was evident there was a dispute over who was authorised to represent both firms, urging the court to address the issue and provide direction on the appropriate counsel for each party.
In response, Banire maintained that his representation was not in question and that he remained counsel of record from the lower court.
On his part, Olanipekun argued that since the court had not heard any application challenging his representation, he remained the recognised counsel for the second respondent.
He added that he had not been served with any application questioning his role.
Addressing the situation, Nimpar expressed dissatisfaction, asking both parties to resolve the issue before the next hearing.
“There is an obvious conflict regarding the applications for change of counsel filed on behalf of the first and second respondents,” she said.
“Those applications must be taken first to resolve the issue of legal representation before the court can proceed with any other application. The applications, which are not yet ripe for hearing, have now been filed.”
She, therefore, adjourned the case to January 15, 2026.
A federal high court sitting in Lagos had on October 22, 2025 issued an order of Mareva authorising First Trustees and its subsidiary, FBNQuest Merchant, to take over the company’s assets.
Justice D. I. Dipeolu issued the injunction against the defendants — Nestoil and its affiliate, Neconde Energy, as well as Azudialu-Obiejesi and Obiejesi.
Dipeolu restrained dealings in the sum of $1,012,608,386.91 and N430,014,064,380.77 — the total indebtedness as of September 30, 2025.
There were other debts personally guaranteed by Azudialu-Obiejesi, with over N366.8 billion, $61.2 million, $152 million, and N10.4 billion owed to Access Bank, First Bank and Zenith Bank.
However, Nestoil and its principal promoters approach a federal high court to set aside the order of Mareva which was granted before the latest development.
