$1bn debt dispute between Nestoil and FBNQuest deepens amid allegations of judicial interference….
The Federal High Court in Lagos has suspended proceedings in the high-profile multi-billion-naira debt recovery suit between Nestoil Limited and FBNQuest Merchant Bank Limited, following a petition of bias filed against the presiding judge, Justice Deinde Dipeolu, by Nestoil’s chairman, Ernest Azudialu-Obiejesi.
Justice Dipeolu informed both parties in court last Friday that a petition alleging judicial misconduct had been submitted to the Chief Judge of the Federal High Court, Justice John Tsoho. As a result, he announced an immediate adjournment pending the Chief Judge’s review of the complaint.
Pressure on the Judiciary
Separate reports allege that promoters of Nestoil have been mounting pressure on the Chief Judge to either reverse the Mareva injunction earlier granted by Justice Dipeolu or reassign the case to another judge.
Judicial sources cited by the outlet claim that the pressure campaign intensified after Justice Dipeolu refused to vary or suspend his earlier orders. Some senior lawyers were also alleged to be involved in efforts to secure a “favourable” judge should the matter be reassigned allegations that remain unverified.
Whistleblower accounts cited by Premium Times also claim attempts were made to transfer the case to what was described as a “more pliable” court. Judicial insiders quoted in the report said the judge was being targeted precisely because he “refused to do anyone’s bidding.”
Background to the Case
The controversy stems from a Mareva injunction issued by Justice Dipeolu on October 22, 2025, which froze Nestoil’s assets, bank accounts, and shares in more than 20 Nigerian financial institutions.
The order was granted in favour of FBNQuest Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank of Nigeria Limited, over an alleged combined debt of $1.01 billion and ₦430 billion owed by Nestoil, its affiliate Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi.
Court filings indicate that the loans were extended to the Obijackson Group, Nestoil’s parent conglomerate and secured with assets, shares, and oil-field interests.
As part of the injunction, the court appointed Abubakar Sulu-Gambari (SAN) as receiver-manager, authorising him to take possession of Nestoil’s head office at 41/42 Akin Adesola Street, Victoria Island, Lagos, and other identified properties. The order further directed the Nigeria Police Force, Nigerian Navy, and State Security Service (SSS) to assist in enforcement.
Following the ruling, armed police officers sealed Nestoil’s Lagos headquarters in late October, signalling the seriousness of the debt enforcement action.
Current Status
At the last court sitting, Justice Dipeolu told parties he would pause further proceedings until the Chief Judge concludes the review of the petition against him.
Meanwhile, Nestoil has filed a separate application at the Federal High Court, Abuja, seeking to set aside the Lagos Mareva order and halt the enforcement efforts led by the receiver-manager.
What’s at Stake
With liabilities exceeding ₦1 trillion in combined naira and dollar obligations, the Nestoil-FBNQuest dispute ranks among the largest commercial debt cases currently before Nigeria’s courts.
Legal analysts say the unfolding developments could set a precedent for how the judiciary handles high-stakes debt enforcement and judicial integrity issues involving major corporations and financial institutions.
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