The Supreme Court has set back Nestoil Limited and Neconde Energy Limited by sending their ongoing legal dispute back to the Court of Appeal to resolve issues of legal representation.
The Court of Appeal is required to report its findings to the Supreme Court on 26th January 2026.
The ruling was delivered on Monday, 12th January 2026, by a five-justice panel led by Justice Inyang Okoro JSC. Justices Jauro JSC, Sankey JSC, Adumehin JSC, and Sadiq Umar JSC agreed with the decision.
The apex court also warned legal practitioners handling debt recovery cases against filing unnecessary appeals or applications to delay payment, emphasizing that debtors should be encouraged to settle obligations promptly.
The case stems from an alleged debt exceeding $1 billion and ₦430 billion owed by Nestoil and Neconde to a consortium of banks led by FBNQuest Merchant Bank and First Trustees Limited.
On 22nd October 2025, a Federal High Court in Lagos froze the companies’ assets under a Mareva injunction.
The injunction was lifted on 20th November 2025 after the court ruled it had expired.
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On 5th December 2025, the Court of Appeal adjourned proceedings over a dispute regarding legal representation, originally scheduling the next hearing for 15th January 2026.
Founded in 1991, Nestoil is a leading indigenous engineering, procurement, construction, and commissioning firm serving the oil, gas, and energy sectors.
Neconde Energy, its affiliate, holds stakes in upstream oil assets, including Oil Mining Lease 42 in the Niger Delta.
Analysts say the Supreme Court’s ruling highlights the importance of procedural clarity in high-value commercial disputes and reinforces the need for timely debt recovery.