$1bn debt: Legal representation dispute stalls Nestoil, Neconde appeal

The proceedings at the Court of Appeal, Lagos Division, were halted on Thursday after a dispute arose over who was properly authorised to represent Nestoil Limited and Neconde Energy Limited in a $1bn debt appeal.

The appeal, filed by First Trustees Limited and FBNQuest Merchant Bank Limited, is challenging the ruling of Justice Daniel Osiagor of the Federal High Court, Lagos, who on 20 November 2025, lifted a Mareva injunction that had previously frozen the assets of Nestoil, Neconde and their directors over an alleged $1bn debt.

Justice Osiagor found that the ex parte order had elapsed and was no longer in effect and that, under the Federal High Court Rules, an interim freezing order lapses 14 days after an application seeking to discharge it is filed.

Dissatisfied with the ruling, the appellants approached the Court of Appeal and, by a motion dated 26 November 2025, sought a restorative injunction reversing all steps taken after the high court’s ruling.

Granting the request, Justice Yargata Nimpar immediately restored the receivership process, effectively clearing the way for occupation of Nestoil’s headquarters.

The court also barred interference with the receiver’s activities and paused proceedings at the Federal High Court.

Hearing on the substantive application was fixed for 4 December 2025.

However, when the matter was called on Thursday, confusion set in as counsel announced appearances, with both Babajide Koku (SAN) and Kunle Ogunba (SAN) appearing for the appellants.

Tension arose when Ayoola Ajayi (SAN) announced his appearance for Nestoil, while Ayo Olorunfemi (SAN) announced his appearance on behalf of Neconde.

Almost simultaneously, Dr Muiz Banire (SAN) and Chief Wole Olanipekun (SAN), who had represented the firms at the lower court, also announced appearances.

Other counsel who appeared in the matter were Chinonye Obiagwu (SAN) and Kehinde Ogunwumiju (SAN) for the third and fourth defendants, while Oluwakemi Balogun (SAN) appeared as an interested party.