Standoff at Nestoil HQ: Owners vs. Receiver Manager

Although the court canceled the Mareva order, receiver/manager Sulu-Gambari states that his responsibilities at Nestoil are still valid and ...

Although the court canceled the Mareva order, receiver/manager Sulu-Gambari states that his responsibilities at Nestoil are still valid and not impacted.

A tense confrontation took place on Friday at the Lagos office of Nestoil Limited, where the company's owners and the appointed receiver manager clashed over control of the multi-billion-naira oil and gas group.

A source revealed to PREMIUM TIMES that tensions rose when Nestoil's management arrived at the Victoria Island office complex along with a group referred to as a "counter-terrorism unit," claiming they had a court order allowing them to reclaim the building. They were also joined by media personnel who broadcast portions of the incident live.

We are here... the Nestoil management arrived along with a counter-terrorism team, claiming they have a court order and wish to enter," said a source close to the receiver manager. "They came with significant media presence and are broadcasting live. The police used tear gas to disperse everyone.

The source stated that the appointee in charge was placed overNestoil, Abubakar Sulu-Gambari met with the company's representatives, maintaining that they could not legally re-enter the building as an appeal had been submitted against Thursday's decision that overturned the Mareva injunction which previously frozen the company's assets.

The receiver/manager informed them that an appeal had been filed prior to the 'kangaroo judgment,' so the parties must wait for the appeal's result," the source added with emotion. "They aren't making any effort to resolve their debts? Good heavens. What a country!

The clash occurred just 24 hours following the Federal High Court in Lagos overturning a broad ex parte order that had frozen Nestoil's bank accounts, shares, and other assets across more than 20 institutions.

Justice D.E. Osiagor determined that the Mareva injunction initially issued by Justice Deinde Dipeolu on 22 October had expired following the end of the 14-day legal period for considering the motion that contested the order.

The first order was obtained by FBNQuest and First Trustees concerning a claimed unpaid debt exceeding $1.01 billion and ₦430 billion, which is alleged to be owed by Nestoil, Neconde Energy, and their promoters Ernest and Nnena Obiejesi.

It also gave the police, the Navy, the State Security Service, and other security agencies the authority to support the receiver/manager in taking control of Nestoil's headquarters and protecting Neconde's interests in Oil Mining Lease (OML) 42—a directive that resulted in the police locking down the building on 28 October.

The situation grew more heated when Nestoil and Neconde submitted a request to the National Judicial Council and the Chief Judge of the Federal High Court, urging that the case be transferred to a different judge. They claimed that Justice Dipeolu had made harsh rulings without listening to their perspective and without verifying ownership of the Victoria Island property.

A legal professional acquainted with the case revealed to PREMIUM TIMES that the petition was reportedly intended to transfer the case from Justice Dipeolu, who is known for his strong stance and ethical conduct.

The chairman of Nestoil, Ernest Azudialu-Obiejesi, however, maintains that the company lacks trust in the judge: "He is biased, and we don't believe we can receive a fair verdict from him," he stated to PREMIUMTIMES.

The case is scheduled to continue before Judge Osiagor on 25 November for a motion to join parties, and on 12 December for the consideration of outstanding requests.

Receiver States Nestoil Continues to Be Under Receivership

Although the court canceled the Mareva order, receiver/manager Sulu-Gambari stated on Thursday that his responsibilities are still valid and not impacted.

He stated that the order did not revoke his control over all operations, reputation, and assets of Nestoil and Neconde, including stakes in OML 42.

"The person signing this document continues to serve as Receiver/Manager," he stated in a public announcement, cautioning commercial banks, regulators, contractors, and business associates against engaging with representatives of Nestoil without his permission.

He warned that such actions would be unlawful and result in serious legal repercussions.

The clash on Friday suggests that the struggle over Nestoil's resources, including oil, gas, power, and infrastructure, remains ongoing.

Following the submission of a petition, several lawsuits still in progress, and claims of impartiality in the court system circulating, the ongoing legal and business conflict seems likely to intensify in the near future.

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