A consortium of Nigerian lenders has placed Nestoil Limited, one of the country’s leading oil and gas service companies, under receivership over a debt estimated at $1 billion, but the firm says its still operational despite the sealing of its corporate headquarters.
The development followed a federal high court order obtained on October 22,2025.
The Federal High Court in Lagos issued a Mareva injunction — a form of asset-freeze order — empowering First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, to take control of Nestoil’s assets.
Nestoil, a firm within the Obijackson Group, is a business conglomerate founded by Ernest Azudialu-Obiejesi (also known as Obijackson), is a leading Nigerian engineering, procurement, construction, and commissioning (EPCC) service provider. The Obijackson Group is a diversified business with interests in oil and gas, aviation, real estate, and shipping, among others.
The injunction, granted by Justice D. I. Dipeolu, was issued against Nestoil Limited, its affiliate Neconde Energy Limited, and their principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.
Following the court’s decision, armed officers of the Nigeria Police Force (NPF) early Tuesday morning sealed the corporate headquarters of Nestoil Limited in Victoria Island, Lagos to enforce the receivership and prevent the movement or disposal of company property.
Our correspondent observed dozens of armed police officers enforcing the order to seal off the premises located at 41/42 Akin Adesola Road on Victoria Island.
Members of staff were sent out of the premises as they all watched in bewilderment as the order of possession was being effected.
Nestoil, founded in 1991 by Ernest Azudialu-Obiejesi, is Nigeria’s largest indigenous Engineering, Procurement, Construction and Commissioning (EPCC) Company in the Oil and Gas sector.
However, in recent years, the company has reportedly faced liquidity pressures over indebtedness to lenders.
But Nestoil said in a statement on Tuesday evening that its operations remain fully functional despite the court-ordered sealing of its Lagos head office by security operatives.
The Group, in a statement, said the closure of its Victoria Island office did not affect business continuity across its subsidiaries and project sites.
It added that staff were working remotely and operations were continuing as normal while it engaged relevant authorities and parties to resolve the matter through legal channels.
According to the statement: “Nestoil Group (“the Group”) acknowledges recent media reports regarding certain enforcement actions and the status of its corporate assets. We wish to provide the following clarifications to our stakeholders, partners, and the general public:
“Nestoil is aware of the reports and ongoing legal processes referenced in the media. The situation relates to a commercial matter currently before the courts, which is being addressed through appropriate legal and regulatory channels.
“Nestoil remains fully operational across all business lines. Our subsidiaries, projects, and commitments in the oil, gas, power, and infrastructure sectors continue without disruption. Proactive measures have been implemented to protect our workforce, sustain operations, and uphold our obligations to clients and partners.”
The company assured clients, partners, and stakeholders of its financial stability and commitment to ongoing oil and gas projects, describing the development as a temporary procedural step in a commercial dispute.
Nestoil Group expressed confidence that the issue would be resolved soon through lawful and constructive engagement.
