Nestoil Limited, one of Nigeria’s major oil and gas companies, has been taken over by Nigerian banks and placed under receivership following allegations of $1 billion debt.

The development came after the Federal High Court in Lagos issued an order on October 22, 2025, authorizing First Trustees and its subsidiary FBNQuest Merchant Bank to take control of Nestoil’s assets.

The order, granted by Justice D. I. Dipeolu, also prompted the Nigeria Police Force to seal off Nestoil’s corporate headquarters located in Victoria Island, Lagos.

The injunction lists Nestoil Limited, its affiliate Neconde Energy Limited, and the company’s promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi, as primary defendants. Several major financial institutions—including Access Bank, Zenith Bank, GTBank, Fidelity Bank, and Stanbic IBTC Bank—were also named as affected parties.

According to court documents, the injunction restrains all listed banks from releasing or dealing in funds totaling over $1.01 billion and ₦430 billion, representing the total debt as of September 30, 2025.

The court’s decision also highlights other debts personally guaranteed by Azudialu-Obiejesi, including liabilities exceeding ₦366.8 billion, $61.2 million, and $152 million owed to Access Bank, First Bank, and Zenith Bank, respectively.

The substantive case is expected to be heard next month, marking a significant chapter in one of Nigeria’s largest corporate debt recovery battles.