Court Rules on Nestoil’s Application for Injunctive Relief Against 8 Banks
The Federal High Court in Abuja, on Thursday, fixed Jan. 22, 2026, for ruling on Nestoil Limited’s request for injunctive relief against eight Nigerian banks and the African Export-Import Bank (Afreximbank).
The eight banks include Access Bank Plc, First Bank of Nigeria Ltd, African Export-Import Bank, ECOBANK, First City Monument Bank, Union Bank, United Bank for Africa, Zenith Bank, FBN Quest Trustees Ltd and FBN Quest Merchant Bank Ltd.
The ruling is on the release of the company’s account statements, as well as arguments surrounding receivership proceedings initiated against the firm following a notice of default.
Justice Mohammed Umar fixed the date after taking arguments from counsel for the plaintiff and the defence. Nestoil Limited had dragged the banks before Justice Umar, seeking restraining orders to halt the receivership proceedings initiated against it.
In the motion on notice filed by Nestoil, dated Oct. 28 by its lead counsel, Mofesomo Tayo-Oyetibo, SAN, the company sought an order of interlocutory injunction pending the hearing and determination of the substantive suit.
It sought an order restraining the defendants — by themselves, their officers, agents, servants, receivers/managers, liquidators, or any persons acting under their authority — from enforcing or further enforcing the notice of default dated May 30 or any similar notice issued pursuant to the Common Terms Agreement (CTA) executed in September 2022.
It further requested that the defendants be restrained from publishing or indicating in any public medium or credit bureau that Nestoil, its obligors, or guarantors are indebted to them.
Tayo-Oyetibo argued that the respondents were allegedly making “wrongful demands and threats” against his client.
He maintained that Nestoil had “substantially performed its obligations under the CTA and underlying facility agreements,” adding that the company had repaid hundreds of millions of dollars under the said agreements.
However, he noted that by letters dated May 13 and May 30 — referred to as “the May Letters” — the 10th respondent issued demand notices to Nestoil under the CTA, alleging indebtedness.
The counsel urged the court to hold that the banks’ alleged refusal to provide Nestoil with its account statements, while relying on “opaque computed figures” to issue debt recovery threats, was unlawful and oppressive.
In a separate motion on notice filed by counsel for the banks, Babajide Okun, SAN, the respondents urged the court to strike out Nestoil’s suit for being incompetent and an abuse of court process.
Okun argued that the case constituted a “multiplicity of actions,” as the same parties and subject matter were already being litigated before the Federal High Court in Lagos.
He noted that the Abuja suit attempts to relitigate issues already pending before the Lagos division.
He further contended that Nestoil, which is currently under receivership, lacks the legal standing (locus standi) to initiate the suit without the consent or approval of the appointed receiver/manager.
At the resumed hearing on Wednesday, Tayo-Oyetibo, who represented Nestoil, maintained that his application for injunction had nothing to do with abuse of court process, as claimed by the banks.
He argued that the Abuja case specifically concerns the banks’ alleged refusal to release his client’s bank statements amid an alleged $1.01 billion loan dispute.
Victor Ogunde, SAN, who appeared for the respondents, disagreed with Tayo-Oyetibo’s submission.
Ogunde argued that Nestoil could not be seeking injunctive relief against his clients when the Court of Appeal had recently given an order restraining such relief and that the appellate case is still pending.
“They cannot be asking this court to embark on a collision course with the Court of Appeal,” Ogunde argued, adding that the suit was filed without the consent of the company’s receiver/manager.
Tayo-Oyetibo countered that in an email from FBNQuest in May 2025, the bank allegedly stated it would not release Nestoil’s account statements despite claiming the company owed $122 million at the time — a figure that later escalated to $1 billion, according to him.
He said such a drastic change within a few months “is too wide for you to kill someone’s business.”
He added that the Companies and Allied Matters Act (CAMA) requires a receiver/manager to notify the company directly, rather than simply placing a newspaper advertisement as was allegedly done.
Ogunde urged the court to dismiss the application, insisting that there was no contradiction regarding Nestoil’s indebtedness and that the trial court could not be compelled to issue an injunction against the receiver/manager.
Tayo-Oyetibo further argued that nothing in the Court of Appeal ruling prevents his client from pursuing its “right to request bank statements.”
Ogunde maintained that the status quo remains that a receiver/manager is in place, and the Court of Appeal had ordered that the receiver/manager should not be restrained.
Justice Umar subsequently adjourned the matter until Jan. 22, 2026, for ruling or report.
Officers of the Nigeria Police Force (NPF) recently sealed the headquarters of the company in Victoria Island, Lagos, following a Federal High Court order freezing the company’s assets, bank accounts, and shares over an alleged 1.01 billion dollars and N430 billion debt owed to FBNQuest, Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank of Nigeria Limited..
The enforcement followed a Mareva injunction granted by Justice D. I. Dipeolu of the Federal High Court in Lagos on Oct. 22.
The order authorised the takeover of assets belonging to Nestoil Limited, its affiliate Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi, across more than 20 financial institutions in Nigeria.
The court also directed all affected financial institutions to disclose, under oath, details of funds or investments belonging to Nestoil and its affiliates within seven days of being served with the order.
That order was later reversed by another judge of the Federal High Court in Lagos.
FBNQuest subsequently approached the Court of Appeal, Lagos, which issued an interim injunction restraining Nestoil and others from interrupting the duties of the receiver/manager. Federal Begins N185 billion Gas Legacy Debt Repayment
