Appeal Court Bars Olanipekun, Banire From Representing Nestoil, Neconde in $2bn Debt Case

The Court of Appeal has rejected the appointment of WoleOlanipekun and Muiz Banire as counsel representing Nestoil and Neconde in the$2 billion debt case filed by FBNQuest Merchant Bank Limited and FirstTrustees. In its ruling on Friday, the court held that the powers ofthe Ernest Azudialu-Obiejesi-led board of directors to appoint lawyers has beensuspended by the receivership. The court granted the orders to disqualify and suspend thesenior lawyers and other members of the legal team assembled byAzudialu-Obiejesi, maintaining that the plaintiff that sued and appointed thereceiver is the entity that can appoint lawyers for the defendants. The court also struck out all processes filed by the lawfirms. The supreme court had previously asked all parties to returnto the court of appeal to resolve the issue of legal representation andthereafter report back on January 26, 2026 on other aspects in contention. The appeal to the apex court was filed by Nestoil, Neconde,and their promoters, Ernest Obiejesi and Nnenna Obiejesi. Olanipekun sought to represent Neconde while Banire was tohold a brief for Nestoil. Their authority was challenged by Ayo Olorunfemi leading AmeOgie for Neconde and Ayoola Ajayi leading MB Ganiyu for Nestoil. Appearing for Ernest Azudialu-Obiejesi was Chinonye Obiagwuwhile Kehinde Ogunyumiju leading Ademola Abimbola and Chikasolu Ojukwu appearedfor Nnenna Obiejesi. Abubakar Sulu-Gambari is the receiver manager appointed byFBNQuest Merchant Bank Limited and First Trustees. They are represented by Babajide Koku, Victor Ogude, andOmosanya Poopola, leading Toheeb Ipaye, Kamaal Fagbemi, Kehinde Wilkey andBuchi Ofulue. LEGAL SHOWDOWN A federal high court sitting in Lagos had on October 22,2025 issued an order of Mareva authorising First Trustees and its subsidiary,FBNQuest Merchant, to take over the companies’ assets. Justice D. I. Dipeolu issued the injunction against thedefendants — Nestoil and its affiliate, Neconde Energy, as well asAzudialu-Obiejesi and Obiejesi. Dipeolu restrained dealings in the sum of $1,012,608,386.91and N430,014,064,380.77 — the total indebtedness as of September 30, 2025. There were other debts personally guaranteed byAzudialu-Obiejesi, with over N366.8 billion, $61.2 million, $152 million, andN10.4 billion owed to Access Bank, First Bank and Zenith Bank. However, Nestoil and its principal promoters approached afederal high court to set aside the order of Mareva which was granted beforethe latter developments.

Read More