KEY POINTS
• The Nestoil debt dispute involves more than $1 billion in obligations.
• A Lagos court granted receivership to a consortium of banks.
• Nestoil says it remains operational despite the ongoing legal action.
Ernest Azudialu-Obiejesi, one of Nigeria’s most recognisable oil-and-gas magnates, is entangled in a billion-dollar debt crisis that has drawn the attention of the country’s financial and legal sectors. His flagship company, Nestoil Group, has come under receivership after a Federal High Court in Lagos gave lenders the authority to seize control of assets linked to the firm and its affiliates.
Nestoil debt dispute deepens
Police sealed Nestoil’s headquarters on Victoria Island earlier this week as court-appointed receivers enforced the order, according to people present at the site. The receivership follows a Mareva injunction issued on October 22, empowering a consortium of banks to take possession of properties belonging to Nestoil Limited and its sister company, Neconde Energy. The injunction also lists Azudialu-Obiejesi and his wife as promoters of the indebted firms. A substantive hearing on the lenders’ motion is set for November 7.
According to Billionaire Africa, Nestoil, in a brief statement, confirmed that the issue is a commercial dispute before the courts. The company said its wider operations remain active, urging staff and partners to stay calm despite restricted access to the Lagos headquarters during the enforcement exercise. It did not directly comment on the reported $1 billion debt figure.
Banks tighten grip on energy borrowers
Founded in 1991, Nestoil grew into one of Nigeria’s biggest indigenous engineering, procurement, construction, and commissioning companies in the energy sector. Azudialu-Obiejesi later established Neconde Energy, which operates Oil Mining Lease 42 in the Niger Delta, and chairs the wider Obijackson Group, including the Obijackson Foundation.
The Nestoil debt dispute highlights the financial strain confronting Nigerian oil companies that expanded aggressively in past years. Many of these firms, heavily reliant on foreign and local loans, now face tighter liquidity and currency challenges that have prompted banks to recover their exposures through the courts.
As of press time, Azudialu-Obiejesi had not issued a personal statement. The court’s injunction remains active until the next hearing in November.
