The Economic and Financial Crimes Commission (EFCC) intervention within the debt agreement dispute between native power company Nestoil Limited and a consortium of lenders has yielded additional certain effects, with the corporate paying an extra $40 million to the collectors.
The recent fee on 19 October introduced the full paid to the lenders thus far to $100 million, other people accustomed to the subject advised PREMIUM TIMES.
It marks main growth within the structured compensation plan Nestoil and the lenders agreed to at a gathering previous organised by way of the EFCC, which yielded an preliminary fee of $60 million from the oil company to the banks.
The settlement set out a framework for repaying the exceptional debt, according to the events’ agreed phrases and appropriate rules.
The EFCC’s mediation within the dispute centres on sure monetary transactions involving Nestoil, its associate Neconde Power Restricted, and the banks.
The lenders welcomed the most recent fee as a key, encouraging construction and reaffirmed their dedication to endured cooperation with the EFCC and different related stakeholders to verify complete agreement of the debt.
The EFCC’s media division may no longer be reached for remark.
Background
The feud between Nestoil and the lenders is a sophisticated prison struggle that got here to a head on the Excellent Courtroom of Nigeria in June, prompting the court docket to annul a Courtroom of Attraction order freezing the property of Nestoil and Neconde Power.
The lawsuit seeks to get better money owed of greater than $1 billion and N430 billion allegedly owed by way of Neconde and Nestoil, in addition to Azudialu Obiejesi and Nnenna Azudialu-Obiejesi, their best promoters.
In October 2025, cops performing on an order issued by way of Dehinde Dipeolu, a pass judgement on of the Federal Prime Courtroom, Lagos Department, sealed Nestoil’s headquarters in Lagos. The order gave FBN Quest Service provider Financial institution and First Trustees depart to take over Nestoil’s property.
Justice Dipeolu granted a couple of orders freezing the defendants’ financial institution accounts and stocks held with greater than 20 monetary and different establishments in Nigeria.
The court docket additionally permitted Abubakar Sulu-Gambari (SAN), the receiver/supervisor appointed by way of the plaintiffs, to take over Nestoil’s headquarters and different known property.
Justice Dipeolu additionally directed a couple of safety businesses to lend a hand put into effect the receivership.
Following Nestoil’s court cases in regards to the complaints, John Tsoho, the manager pass judgement on of the Federal Prime Courtroom, reassigned the case to any other pass judgement on.
On 20 November 2025, J. Osiagor, the brand new Pass judgement on, revoked the sooner receivership-enforcement order.
FBN Quest Service provider Financial institution and First Trustees appealed in opposition to the verdict on 22 November 2025.
In November 2025, the Courtroom of Attraction issued a restorative injunction in an ex parte utility filed by way of the monetary establishments.
The order reversed Justice Osiagor’s determination and in addition forbade Nestoil, Neconde and their brokers from obstructing the receiver/supervisor pending the listening to of the attraction.
In January, the Excellent Courtroom ordered all of the events within the swimsuit to go back to the Courtroom of Attraction to get to the bottom of a big procedural factor.
It held that the attraction court docket needed to get to the bottom of the problem of prison illustration.
As a result, in January, the Courtroom of Attraction disqualified Wole Olanipekun, Muiz Banire, and different attorneys showing with them from representing Neconde and Nestoil.
It dominated that the receivership of Mr Sulu-Gambari had suspended Mr Azudialu-Obiejesi’s powers.
However in June, the Excellent Courtroom dominated that the appellate court docket exceeded its authority by way of issuing an ex parte utility in opposition to the oil corporations.
It dominated that the Courtroom of Attraction assumed jurisdiction and granted an injunction in opposition to Neconde and Nestoil when the dispute used to be no longer correctly prior to the court docket.
It additionally rebuked the decrease court docket for misusing the judicial procedure in granting a keep of complaints on the Federal Prime Courtroom, Lagos.
The court docket as a result annulled the freezing order on Nestoil’s and Neconde’s property.
Have an effect on of Nestoil debt on banks
“Previous to the Courtroom Motion, Nestoil got a number of bilateral mortgage amenities from 8 (8) lenders relationship again to 2010 and serially defaulted on all of the more than a few compensation responsibilities,” the consortium of lenders stated in a statement following the Excellent Courtroom’s ruling.
READ ALSO: Bayelsa suspends oil firm’s land acquisition over fatal community dispute
“Nestoil therefore proposed restructuring the bilateral mortgage amenities to convey the Lenders right into a World Membership to ease the management of the indebtedness. Lenders, in just right religion, agreed to this restructuring, however Nestoil has once more serially defaulted on its compensation responsibilities for the reason that restructuring changed into efficient in 2023,” the lenders added.
In line with a May press release, Nestoil’s alleged $2 billion distressed mortgage has precipitated “a historical stability sheet reset” and “a loss of dividend bills” at some main Nigerian banks.
The observation indexed First Financial institution, United Financial institution for Africa, and Get right of entry to Financial institution some of the monetary establishments maximum suffering from Nestoil’s unhealthy loans.
Uncover extra from Top rate Occasions Nigeria
Subscribe to get the most recent posts despatched for your electronic mail.