The court of appeal has rejected the appointment of Wole Olanipekun and Muiz Banire as counsel representing Nestoil and Neconde in the $2 billion debt case filed by FBNQuest Merchant Bank Limited and First Trustees.
In its ruling on Friday, the court held that the powers of the Ernest Azudialu-Obiejesi-led board of directors to appoint lawyers has been suspended by the receivership.
The court granted the orders to disqualify and suspend the senior lawyers and other members of the legal team assembled by Azudialu-Obiejesi, maintaining that the plaintiff that sued and appointed the receiver is the entity that can appoint lawyers for the defendants.
The court also struck out all processes filed by the law firms.
The supreme court had previously asked all parties to return to the court of appeal to resolve the issue of legal representation and thereafter report back on January 26, 2026 on other aspects in contention.
The appeal to the apex court was filed by Nestoil, Neconde, and their promoters, Ernest Obiejesi and Nnenna Obiejesi.
Olanipekun sought to represent Neconde while Banire was to hold a brief for Nestoil.
Their authority was challenged by Ayo Olorunfemi leading Ame Ogie for Neconde and Ayoola Ajayi leading MB Ganiyu for Nestoil.
Appearing for Ernest Azudialu-Obiejesi was Chinonye Obiagwu while Kehinde Ogunyumiju leading Ademola Abimbola and Chikasolu Ojukwu appeared for Nnenna Obiejesi.
Abubakar Sulu-Gambari is the receiver manager appointed by FBNQuest Merchant Bank Limited and First Trustees.
They are represented by Babajide Koku, Victor Ogude, and Omosanya Poopola, leading Toheeb Ipaye, Kamaal Fagbemi, Kehinde Wilkey and Buchi Ofulue.
A federal high court sitting in Lagos had on October 22, 2025 issued an order of Mareva authorising First Trustees and its subsidiary, FBNQuest Merchant, to take over the companies’ assets.
Justice D. I. Dipeolu issued the injunction against the defendants — Nestoil and its affiliate, Neconde Energy, as well as Azudialu-Obiejesi and Obiejesi.
Dipeolu restrained dealings in the sum of $1,012,608,386.91 and N430,014,064,380.77 — the total indebtedness as of September 30, 2025.
There were other debts personally guaranteed by Azudialu-Obiejesi, with over N366.8 billion, $61.2 million, $152 million, and N10.4 billion owed to Access Bank, First Bank and Zenith Bank.
However, Nestoil and its principal promoters approached a federal high court to set aside the order of Mareva which was granted before the latter developments.