Nestoil Limited has approached the Federal High Court in Abuja, seeking restraining orders against eight Nigerian banks and the African Export-Import Bank (Afreximbank) to stop receivership proceedings triggered by a Notice of Default.
The banks involved include Access Bank, FBNQuest Merchant Bank Limited, and Afreximbank. Justice Mohammed Umar presided over the hearing on Wednesday, where legal teams representing both parties presented their motions.
Nestoil’s lead counsel, Mofesomo Tayo-Oyetibo (SAN), urged the court to grant an interlocutory injunction to restrain the banks, their officers, agents, and receivers from enforcing the May 30, 2025 Notice of Default or any similar actions under the Common Terms Agreement (CTA) of September 2022.
According to Tayo-Oyetibo, the banks’ demand notices and threats are “wrongful” as Nestoil has substantially fulfilled its obligations under the CTA, repaying hundreds of millions of dollars to the financial institutions. He argued that the banks’ refusal to provide account statements and reliance on “opaque computed figures” for debt recovery constitutes unlawful and oppressive conduct.
In response, the banks’ counsel, Babajide Okun (SAN), sought to strike out Nestoil’s suit, arguing that it is a “multiplicity of actions” since a similar matter is already pending before the Federal High Court in Lagos. Okun also contended that Nestoil, currently under receivership, lacks the legal standing to file the Abuja suit without the approval of the appointed receiver/manager.
During proceedings, Justice Umar cautioned against addressing the substantive issues at this preliminary stage, emphasizing that all raised matters would be considered. The judge subsequently adjourned the case to December 4, 2025, for hearing.
The legal battle follows a Mareva injunction issued by Justice D. I. Dipeolu of the Lagos Federal High Court on October 22, 2025, which authorized the freezing of Nestoil’s assets, bank accounts, and shares across more than 20 financial institutions. The enforcement led to police sealing Nestoil’s Victoria Island headquarters in Lagos, prompting the company to seek legal redress in Abuja.
Videos from the Lagos enforcement showed personnel surrounding Nestoil’s multi-storey building, with a notice reading “Possession taken by court.” The Lagos case is scheduled for further hearing on November 7, 2025.
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