The Economic and Financial Crimes Commission (EFCC) has facilitated the recovery of $60 million from indigenous oil and gas company Nestoil Limited, with the funds paid to a consortium of local and international lenders as part of efforts to resolve the company’s long-running debt obligations.
According to the report by Nairametrics, citing sources familiar with the development, the payment followed a structured repayment arrangement between Nestoil and its lenders, facilitated by the EFCC amid an ongoing investigation into transactions involving the company and the financial institutions.
The sources said EFCC Chairman, Ola Olukoyede, convened and chaired a meeting between Nestoil and the consortium, leading to an agreement on a structured repayment plan for the outstanding obligations.
The $60 million payment represents the first phase of the recovery process, while about $40 million is expected in the next tranche, according to the sources.
The recovery was reportedly facilitated by operatives of the EFCC’s Lagos Zonal Directorate 2 as part of investigations into alleged criminal aspects of transactions surrounding Nestoil’s credit facilities and subsequent defaults.
The lenders are said to have welcomed the payment but stressed that it represents only a fraction of the company’s total indebtedness. They are expected to continue working with the EFCC and other stakeholders to recover the outstanding sums.
The recovery marks a significant development in a protracted dispute between Nestoil and a consortium comprising Access Bank, Zenith Bank, Ecobank, African Export-Import Bank (Afreximbank), First Bank of Nigeria, First City Monument Bank (FCMB), United Bank for Africa (UBA) and Union Bank of Nigeria.
According to figures previously disclosed by the lenders, Nestoil’s total indebtedness had risen to approximately $1.084 billion and N469.43 billion as of June 2026.
The lenders said the obligations arose from several bilateral credit facilities extended to Nestoil by the financial institutions from as far back as 2010.
The facilities were subsequently consolidated under a restructuring arrangement known as the “Global Club”, which became effective in 2023. The restructuring was designed to simplify the administration and repayment of the company’s obligations.
However, the lenders alleged that repayment defaults persisted after the restructuring.
The disagreement escalated in October 2025 when the Federal High Court in Lagos granted a Mareva injunction freezing assets, bank accounts and shares linked to Nestoil, its affiliate Neconde Energy Limited and their promoters.
Court filings at the time put the alleged indebtedness at approximately $1.01 billion and N430 billion as of September 30, 2025.
The court also appointed Abubakar Sulu-Gambari, SAN, as receiver-manager and authorised him to take possession of specified assets.
Enforcement of the order subsequently led to the sealing of Nestoil’s headquarters on Akin Adesola Street, Victoria Island, Lagos.
Nestoil, however, maintained that it remained operational and described the matter as a commercial dispute being addressed through the courts.
The legal battle subsequently progressed through the Federal High Court, Court of Appeal and Supreme Court, with the parties contesting issues surrounding debt recovery, receivership and interim orders affecting Nestoil and Neconde.
In June 2026, the Supreme Court set aside interim preservative orders previously granted by the Court of Appeal and directed the parties to return to the lower court to address the substantive issues in the dispute.
The lenders subsequently clarified that the Supreme Court ruling did not extinguish Nestoil’s indebtedness or invalidate the underlying debt recovery process.
The recovery is also significant for Nigeria’s banking sector, where several of the lenders have already recognised substantial impairment charges arising from distressed loans.
Five banking groups — Access Holdings, UBA, Ecobank, First HoldCo and FCMB — collectively recorded N2.16 trillion in impairment charges in their 2025 financial statements, amid increased provisioning for non-performing and distressed loans.
Nestoil was identified as one of the major distressed oil and gas exposures contributing to elevated impairment charges across the sector.
First HoldCo recorded about N748 billion in impairment charges, while UBA booked approximately N331 billion in loan-loss provisions. Access Holdings’ impairment charge on loans and advances to customers rose to about N287.3 billion, while FCMB recorded net impairment losses on loans of approximately N92.5 billion.
Against this backdrop, the $60 million recovery offers some relief to the affected lenders, although it remains relatively small compared with the overall obligations.
Based on the lenders’ previously disclosed $1.084 billion dollar-denominated debt alone, the recovered $60 million represents about 5.5 per cent of the dollar component, excluding the additional N469.43 billion obligation.
The structured repayment arrangement could nevertheless provide a pathway for further recoveries, even as the EFCC investigation and broader legal proceedings over Nestoil’s indebtedness continue.
