June 1 (THEWILL) — The Supreme Court on Monday overturned a Court of Appeal order that froze the assets of Neconde Energy Limited, Nestoil Limited and two other entities over an alleged $1.1 billion debt dispute involving FBNQuest Merchant Bank Limited and First Trustees Limited.
In a landmark judgment delivered by a five-member panel, the apex court ruled that the Court of Appeal exceeded its constitutional powers when it granted an ex parte application that effectively restored a freeze on the companies’ assets and operations.
Delivering the lead judgment, Justice Stephen Adah faulted the appellate court for assuming jurisdiction over a matter that was not properly before it.
He held that the court acted outside its authority by issuing injunctive orders against Neconde and Nestoil and subsequently interfering with proceedings pending before the Federal High Court in Lagos.
The Supreme Court further criticized the appellate court for what it described as a misuse of judicial process, particularly its decision to grant a stay of proceedings in an ongoing case before the lower court.
The dispute arose from debt recovery proceedings initiated by lenders, including FBNQuest Merchant Bank Limited and First Trustees Limited, over financing arrangements linked to oil assets and operations managed by the affected companies.
In October 2025, the Federal High Court in Lagos granted an ex parte Mareva injunction freezing the companies’ assets, bank accounts and shares across more than 20 financial institutions.
However, Neconde and Nestoil challenged the order, arguing that it automatically lapsed after 14 days under the Federal High Court Civil Procedure Rules once an application to discharge it was filed.
Justice Daniel Osiagor subsequently ruled in November 2025 that the order had expired by operation of law.
Despite that decision, the Court of Appeal later restored the asset freeze and receiver-manager arrangement.
With the Supreme Court now setting aside the appellate court’s decision, the companies regain full control of their assets and operations, while the substantive dispute returns to the trial court for determination.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
