● Apex court voids Appeal Court’s interim order returning control to receiver manager; says matter was not properly before it, orders case back to Federal High Court Lagos
The Supreme Court on Monday set aside an order of the Court of Appeal that froze the assets of Neconde Energy Limited, Nestoil Limited and two others over an alleged $1.1 billion debt to FBNQuest Merchant Bank Limited and First Trustees Limited.
A five-member panel led by Justice Stephen Adah held that the three-member Appeal Court panel went beyond its powers in granting an ex parte application against the appellants.
—“Matter not properly before the court”—
In the lead judgment, Justice Adah berated the appellate court for assuming jurisdiction and issuing an injunction against Neconde and Nestoil when the matter was not properly before it.
The Supreme Court also accused the Court of Appeal of misuse of judicial process, particularly for issuing a stay of proceedings at the Federal High Court, Lagos while the case was still pending.
–‘The debt fight timeline–
The dispute stems from debt recovery proceedings instituted by FBNQuest Merchant Bank and First Trustees against Nestoil and Neconde over financing arrangements tied to oil assets and operations.
1. Oct 2025: Federal High Court Lagos granted an ex parte Mareva injunction freezing the companies’ assets, bank accounts and shares across 20+ financial institutions.
2. Nov 2025: Justice Daniel Osiagor ruled the ex parte order expired by operation of law after 14 days once a motion to discharge was filed.
3. Nov 29, 2025: Justice Yargata Nimpar of the Court of Appeal granted an interim restorative injunction returning control of Nestoil’s assets and operations to the receiver manager appointed by the banks. He set aside all steps Nestoil took after Nov 20 and said the Mareva injunction continued to operate.
—Assets unfrozen, control restored—
With the Supreme Court’s decision, the Appeal Court’s interim order has been voided. The case returns to the Federal High Court for continuation of trial. Neconde and Nestoil remain fully in charge of their companies and assets pending final determination
