The Court of Appeal has nullified the appointment of Wole Olanipekun and Muiz Banire as legal representatives for Nestoil and Neconde Energy in the $2 billion debt suit instituted by FBNQuest Merchant Bank Limited and First Trustees.
In a ruling delivered on Friday, the appellate court held that the authority of the board of directors led by Ernest Azudialu-Obiejesi to engage counsel had been suspended following the placement of the companies under receivership.
The court consequently granted applications seeking the disqualification and suspension of the senior advocates and other members of the legal team constituted by Azudialu-Obiejesi. It ruled that the entity which initiated the action and appointed the receiver retains the exclusive right to appoint counsel for the affected companies.
All court processes filed by the disqualified law firms were also struck out.
The supreme court had earlier directed all parties to return to the court of appeal to resolve the dispute over legal representation and to report back on January 26, 2026 regarding other outstanding issues.
The appeal to the apex court was filed by Nestoil, Neconde, and their promoters, Ernest Obiejesi and Nnenna Obiejesi.
While Olanipekun was engaged to represent Neconde, Banire was appointed to act for Nestoil.
Their appearance was opposed by Ayo Olorunfemi, who led Ame Ogie for Neconde, and Ayoola Ajayi, who appeared alongside MB Ganiyu for Nestoil.
Chinonye Obiagwu represented Ernest Azudialu-Obiejesi, while Kehinde Ogunyumiju, leading Ademola Abimbola and Chikasolu Ojukwu, appeared for Nnenna Obiejesi.
Abubakar Sulu-Gambari serves as the receiver manager appointed by FBNQuest Merchant Bank Limited and First Trustees. The receivers are represented by Babajide Koku, Victor Ogude, and Omosanya Poopola, leading Toheeb Ipaye, Kamaal Fagbemi, Kehinde Wilkey, and Buchi Ofulue.
Recall that on October 22, 2025, a federal high court sitting in Lagos issued a Mareva injunction authorising First Trustees and its subsidiary, FBNQuest Merchant, to assume control of the companies’ assets.
Justice D. I. Dipeolu granted the order against Nestoil, its affiliate Neconde Energy, and their promoters, Azudialu-Obiejesi and Obiejesi.
The injunction restrained transactions involving $1,012,608,386.91 and N430,014,064,380.77, representing the companies’ total indebtedness as of September 30, 2025.
The court was also informed of other obligations personally guaranteed by Azudialu-Obiejesi, including debts exceeding N366.8 billion, $61.2 million, $152 million, and N10.4 billion owed to Access Bank, First Bank, and Zenith Bank.
Subsequently, Nestoil and its principal promoters approached a federal high court seeking to set aside the Mareva order, which had been granted prior to the latest developments in the case.
(THE CABLE)
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