By Obinna Uballa
The long-running debt dispute involving Nestoil Limited and Neconde Energy Limited entered a new chapter as proceedings at the Federal High Court in Lagos have stalled following allegations of judicial misconduct against Justice D.I. Dipeolu.
The companies and their promoters have petitioned the National Judicial Council (NJC) and the Federal High Court Chief Judge, seeking reassignment of ongoing cases, including FHC/L/CS/2127/2025, to another judge pending review.
The case, initiated by FBNQuest Merchant Bank Limited and First Trustees Limited, seeks to appoint a receiver over Nestoil’s assets, citing alleged debt defaults totaling over US$1 billion and N430 billion as of September 30.
In October, the court authorised a court-appointed receiver, Abubakar Sulu-Gambari, SAN, to take control of company assets, supported by law enforcement agencies, including the Nigerian Navy, Police, and SSS.
The court order also included a Mareva injunction, freezing the companies’ accounts and preventing executives from accessing funds estimated at US$486 million and N390 billion. The receiver was empowered to manage Nestoil and Neconde offices on Victoria Island and oversee Neconde’s stake in OML 42, one of the country’s key oil-producing assets.
While Justice Dipeolu granted the motion in part, Nestoil and Neconde argued on Friday that the orders were excessive and procedurally flawed. The petitions allege that the judge acted with bias, failed to verify property ownership of the Victoria Island office complex, legally owned by Drawcok Estates, and ignored the fact that some lenders had appointed separate receivers and initiated independent proceedings.
The companies warn that these actions could disrupt operations, jeopardising production, salaries, and thousands of jobs in the oil and gas sector. Previous court orders by Justice Dipeolu, including a July case involving Neconde and Gobowen Exploration, were later vacated after criticism for violating procedural rules and Supreme Court precedents.
In a petition filed on October 31, Nestoil chairman Ernest Azudialu-Obiejesi highlighted operational disruptions from prior court orders, including the sealing of multi-tenant office buildings affecting firms like Julius Berger Plc and Tecon Group. The filing questioned the court’s review of bank statements, property ownership, and contractual clauses designating English courts as the forum for dispute resolution for one lender.
Despite the legal standoff, Nestoil insists that its operations remain uninterrupted, supporting over 2,000 direct and 15,000 indirect jobs, and continuing projects in oil, gas, power, and infrastructure. The company reiterated its commitment to cooperating with authorities and financial partners to resolve matters transparently.
When the case came up for hearing last Friday, Justice Dipeolu informed the parties that the misconduct petition had been filed, prompting an adjournment to 7 November for the substantive hearing. A lawyer familiar with the matter told PREMIUM TIMES that the petition may be part of a strategy to remove a firm and independent judge, following rulings that challenged chronic loan defaulters.
