• Banks say substantial debt remains outstanding
The Economic and Financial Crimes Commission has recovered $60m from indigenous oil and gas company, Nestoil Limited, for a consortium of lenders amid an ongoing investigation into the company’s indebtedness.
The recovery followed a meeting facilitated by the EFCC Chairman, Ola Olukoyede, where Nestoil and the affected banks reportedly agreed to a structured repayment arrangement aimed at resolving the long-running debt dispute.
Sources familiar with the matter told PLATFORM TIMES that the $60m recovered so far had been paid to the lenders during the course of the commission’s investigation and subsequent engagements between the parties.
The payment was reportedly facilitated by the Head of Investigation at the EFCC’s Lagos Zonal Directorate 2, Oguzi Moses.
The lenders, however, reportedly regarded the recovery as only the beginning of the repayment process, stressing that a substantial portion of the debt remained unpaid.
An EFCC official, who spoke on condition of anonymity because he was not authorised to discuss the case publicly, confirmed the recovery.
The official said the commission intervened because of the wider economic implications of the dispute, particularly its potential impact on major financial institutions and Nigeria’s banking sector.
EFCC spokesperson, Dele Oyewale, could not be reached for comment as calls to his telephone were unanswered.
Nestoil’s Executive Director, Nnenna Azudialu-Obiejesi, also did not respond to calls seeking the company’s reaction.
The latest development comes against the backdrop of a protracted legal and financial dispute between Nestoil, its affiliate Neconde Energy and a consortium of lenders.
FBNQuest Merchant Bank and First Trustees Limited are seeking to recover debts allegedly exceeding $1bn and N430bn from Nestoil, Neconde Energy and their promoters, including Azudialu-Obiejesi and Nnenna Azudialu-Obiejesi.
The dispute escalated last year when officers of the Nigeria Police Force, acting on an order of the Federal High Court in Lagos, sealed Nestoil’s headquarters.
Justice Dehinde Dipeolu had granted orders freezing the defendants’ bank accounts and shares held in more than 20 financial and other institutions.
The court also authorised a receiver/manager, Abubakar Sulu-Gambari, SAN, appointed by the plaintiffs, to take control of Nestoil’s headquarters and other identified assets.
Following complaints by Nestoil, the Chief Judge of the Federal High Court, Justice John Tsoho, reassigned the case.
On November 20, 2025, Justice J. Osiagor revoked the earlier receivership enforcement order, prompting the lenders to appeal.
The Court of Appeal subsequently issued a restorative injunction restraining Nestoil, Neconde and their agents from obstructing the receiver pending determination of the appeal.
The legal battle eventually reached the Supreme Court.
In June 2026, the apex court nullified the Court of Appeal’s freezing order against Nestoil and Neconde, holding that the appellate court had exceeded its jurisdiction by granting an ex parte injunction when the matter was not properly before it.
The Supreme Court also criticised the Court of Appeal over its handling of the proceedings and the stay of proceedings at the Federal High Court.
The lenders have maintained that Nestoil’s indebtedness has placed considerable pressure on the balance sheets of some major Nigerian banks.
According to the consortium, Nestoil obtained several bilateral loan facilities from eight lenders beginning in 2010 but subsequently defaulted on its repayment obligations.
The lenders said Nestoil later proposed restructuring the facilities into a global club arrangement to ease administration of the debt.
They said they accepted the restructuring in good faith but alleged that Nestoil again defaulted on its repayment obligations after the restructuring took effect in 2023.
The lenders have described Nestoil’s distressed loans, reportedly running into about $2bn, as having significant consequences for some banks, including First Bank, United Bank for Africa and Access Bank.
They also alleged that the debt crisis had contributed to what they described as a major balance-sheet reset and affected dividend payments by some of the institutions.
The recovery of the $60m therefore represents a significant financial development in the dispute, although the lenders’ position indicates that the settlement process is far from over.
With the EFCC now facilitating negotiations between Nestoil and the lenders, attention is expected to shift to the implementation of the structured repayment plan and the recovery of the outstanding debt.
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