The Courtroom of Appeal sitting in Lagos has held that the scope of the receivership of Neconde Vitality Restricted beneath the Corporations and Allied Issues Act (CAMA) is strictly to the corporate’s pursuits within the Oil Mining License (OML) 42 Joint Enterprise.
The clarification was contained in a Licensed True Copy of the ruling delivered by Justice Polycarp Terna Kwahar and seen by Nairametrics.
The choice supplies recent authorized steering on the powers of a receiver/supervisor appointed over charged property and comes amid an ongoing multi-billion-dollar debt dispute involving Neconde, its affiliate Nestoil Restricted, and a consortium of lenders.
The ruling is predicated on appellate proceedings wherein the Courtroom of Appeal disqualified Chief Wole Olanipekun, SAN, and Dr. Muiz Banire, SAN, from representing Nestoil and Neconde within the dispute.
It additionally represents a big growth in one in every of Nigeria’s most carefully watched business litigations involving oil and fuel property, creditor rights, and company management.
In a unanimous determination, Justice Kwahar upheld the appointment of a receiver/supervisor, emphasising that the receivership is asset-specific and doesn’t prolong to Neconde’s complete company existence.
The court docket made clear that solely the corporate’s participation within the OML 42 Joint Enterprise and associated property fall throughout the scope of the receivership.
“The Receiver/Supervisor’s authority is subsequently asset-specific, not over all the company existence of Neconde, however particularly over the charged property pledged to the lenders beneath the Deed of Cost dated 31 December 2022.”
“Inside this outlined scope, the Receiver/Supervisor is empowered to take possession, protect worth, and realise the charged property for the good thing about the lenders.”
The court docket additional held that though the receiver/supervisor’s powers are in depth and akin to these of an absolute proprietor, they continue to be strictly confined to the charged property linked to the OML 42 Joint Enterprise.
For emphasis, the choose discovered that Mr. Abubakar Sulu-Gambari SAN having being rightly appointed as receiver/supervisor, is the rightful social gathering to characterize or to nominate Counsel to characterize Nestoil on each litigation involving the charged property.
Nonetheless, the choose emphasised that the corporate’s board of administrators can resolve to start an motion difficult any misconduct of the receiver/supervisor.
The dispute between Nestoil, Neconde, and their lenders has unfolded over a number of months throughout a number of courts, reflecting the complexity and scale of the {financial} preparations concerned. It centres on alleged mortgage defaults and the enforcement of safety pursuits granted to collectors.
In November, Nestoil Restricted instituted an motion on the Federal Excessive Courtroom in Abuja towards eight Nigerian banks and the African Export-Import {Bank}, difficult receivership proceedings triggered by a Discover of Default.
The corporate sought restraining orders to halt enforcement actions, arguing that the appointment of a receiver was improper.
The Abuja trial court docket later suspended its ruling, pending the dedication of associated points by the Courtroom of Appeal.
These developments set the stage for the appellate court docket’s intervention, which has now clarified the authorized boundaries of the receivership beneath CAMA 2020.
Past the Abuja proceedings, the dispute has additionally performed out in Lagos, with important enforcement actions taken towards Nestoil and its associates. These actions have drawn public consideration as a result of their scale and the sums concerned.
Nairametrics beforehand reported that armed cops sealed Nestoil’s headquarters in Victoria Island, Lagos, following a Federal Excessive Courtroom order freezing the corporate’s property, {bank} accounts, and shares.
The motion was linked to alleged money owed of $1.01 billion and N430 billion owed to FBNQuest Service provider {Bank} Restricted and First Trustees Restricted.
The enforcement adopted a Mareva injunction granted on October 22, 2025, authorising the takeover of property belonging to Nestoil, Neconde, and their promoters throughout greater than 20 {financial} establishments.
That order was later put aside by one other Federal Excessive Courtroom choose, prompting an enchantment that resulted in an interim injunction restraining Nestoil from interfering with the receiver/supervisor’s duties.
These court docket actions have collectively formed the present authorized and operational standing of the businesses concerned.
The Courtroom of Appeal’s ruling supplies necessary judicial readability on how receivership beneath CAMA must be interpreted and utilized in advanced business transactions.
Any closing dedication is more likely to affect future lending constructions, enforcement methods, and receivership practices inside Nigeria’s business and power sectors.
