By Amarachi Jim-Nwoko
ABUJA (PRECISE POST) – The Supreme Court has overturned a Court of Appeal order freezing the assets of Neconde Energy Limited, Nestoil Limited and two other firms, delivering a major legal victory to the companies in the protracted $1.1 billion debt dispute involving FBNQuest Merchant Bank Limited and First Trustees Limited.
In a unanimous judgment delivered on Monday, a five-member panel of the apex court held that the Court of Appeal exceeded its jurisdiction by granting an ex parte order against the affected companies.
The judgment, delivered by Justice Stephen Adah, faulted the appellate court for assuming powers it did not possess and issuing injunctive orders when the matter was not properly before it.
Justice Adah also criticised the lower court for what he described as a misuse of judicial process, particularly for granting a stay of proceedings at the Federal High Court in Lagos.
The legal battle stems from allegations that Neconde and Nestoil owed the financial institutions about $1.1 billion.
The dispute had taken a dramatic turn in November 2025 when Justice Daniel Osiagor of the Federal High Court ruled that an earlier ex parte order had lapsed by operation of law following the filing of a motion to discharge it.
Despite that ruling, Justice Yargata Nimpar of the Court of Appeal later granted an interim restorative injunction on November 29, returning control of Nestoil’s assets and operations to a receiver-manager appointed by the banks.
The appellate court had also nullified all actions taken by Nestoil after the November 20 Federal High Court ruling, allowing the Mareva injunction to remain in force.
However, the Supreme Court’s latest decision has now nullified that order, effectively restoring full control of the companies’ assets and operations to Neconde and Nestoil.
The ruling also clears the way for the substantive matter to proceed at the trial court for final determination.
