A consortium of Nigerian lenders has placed Nestoil Limited, one of the country’s leading oil and gas service companies, under receivership over a debt estimated at $1 billion.

The development followed a federal high court order obtained on October 22,2025.

The Federal High Court in Lagos issued a Mareva injunction — a form of asset-freeze order — empowering First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, to take control of Nestoil’s assets.

The injunction, granted by Justice D. I. Dipeolu, was issued against Nestoil Limited, its affiliate Neconde Energy Limited, and their principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

Following the court’s decision, police officers sealed off Nestoil’s corporate headquarters on Victoria Island, Lagos, to enforce the receivership and prevent the movement or disposal of company property.

Dozens of armed police officers enforced the order to seal off the premises located at 41/42 Akin Adesola Road on Victoria Island.

Members of staff were sent out of the premises as they all watched in bewilderment as the order of possession was being effected.

Nestoil, founded in 1991 by Ernest Azudialu-Obiejesi, is Nigeria’s largest indigenous Engineering, Procurement, Construction and Commissioning (EPCC) Company in the Oil and Gas sector.

However, in recent years, the company has reportedly faced liquidity pressures over indebtedness to lenders.