The public is now awash with false narratives about the ongoing disputes between FBNQUEST Merchant Bank Limited and First Trustees Limited against Nestoil Limited, Neconde Energy Limited, Ernest Azudialu-Obiejesi and Nnenna Obiejesi and it has now become imperative to clarify the issues.
It is stale news that following the Supreme Court’s directive to all parties to return to the Court of Appeal to resolve the contentious issue of legal representation before reporting back on 26th January 2026, the Court of Appeal in a ruling delivered on Friday, 23 January 2026, upheld the authority of the Receiver/ Manager to, among others, appoint Counsel for Nestoil and Neconde thus disqualifying lawyers Wole Olanipe kun & Co and Muiz Banire & Co from representing the oil and gas firms.
Hitherto, the duo of Chief Wole Olanipekun (SAN), Dr. Muiz Banire SAN together with lawyers appearing with them sought to represent Neconde and Nestoil respectively and their authority was challenged by counsel appointed by the Receiver/Manager namely Ayo Olorunfemi (SAN) leading Ame Ogie for Neconde, and Ayoola Ajayi SAN leading MB Ganiyu for Nestoil.
Additional appearances included Chinonye Obiagwu (SAN) for Ernest Azudialu-Obiejesi, and Kehinde Ogunwumiju (SAN), Tunde Afe-Babalola (SAN), Ademola Abimbola (SAN), and Chikasolu Ojukwu (SAN) for Nnenna Obiejesi, First Trustees and FBNQuest Merchant Bank represented by Babajide Koku (SAN), Victor Ogude (SAN), and Omosanya Popoola (SAN), alongside Toheeb Ipaye, Kamaal Fagbemi, Kehinde Wilkey, and Buchi Ofulue.
The background to this dispute stems from the humongous debts amounting to over $1.01 billion and N430 billion of depositors’ funds as of September 30, 2025 that has been outstanding for over 10 years despite numerous restructurings by lenders at the instance of the debtor companies. As a result of the consistent default in meeting their repayment obligations, the Central Bank of Nigeria has since classified the debts as non-performing.
Sadly, the amount owed by Nestoil and Neconde is equivalent to the minimum capital requirement of four banks with international licenses. Beyond these sums are other debts personally guaranteed by AzudialuObiejesi, including N366.8 billion, $61.2 million, $152 million, and N10.4 billion owed to Lenders.
