The Court of Appeal has rejected the appointment of Wole Olanipekun and Muiz Banire as counsel representing Nestoil and Neconde in the $2 billion debt case filed by FBNQuest Merchant Bank Limited and First Trustees.
In its ruling on Friday, the court concluded that the powers of the Ernest Azudialu-Obiejesi-led board of directors to appoint lawyers have been suspended due to the receivership.
The court granted orders to disqualify and suspend the senior lawyers and other members of the legal team assembled by Azudialu-Obiejesi, asserting that the plaintiff who sued and appointed the receiver is the entity entitled to appoint lawyers for the companies.
Additionally, the court struck out all processes filed by the law firms involved.
The Supreme Court had previously directed all parties to return to the Court of Appeal to resolve the issue regarding legal representation and to report back on January 26, 2026, concerning other contentious matters.
The appeal to the apex court was initiated by Nestoil, Neconde, and their promoters, Ernest Obiejesi and Nnenna Obiejesi.
Olanipekun sought to represent Neconde, while Banire was designated to represent Nestoil.
Their authority faced challenges from Ayo Olorunfemi, leading Ame Ogie for Neconde, and Ayoola Ajayi, leading MB Ganiyu for Nestoil.
Representing Ernest Azudialu-Obiejesi was Chinonye Obiagwu, while Kehinde Ogunyumiju, leading Ademola Abimbola and Chikasolu Ojukwu, appeared for Nnenna Obiejesi.
Abubakar Sulu-Gambari is the receiver manager appointed by FBNQuest Merchant Bank Limited and First Trustees.
They are represented by Babajide Koku, Victor Ogude, and Omosanya Poopola, alongside Toheeb Ipaye, Kamaal Fagbemi, Kehinde Wilkey, and Buchi Ofulue.
### Legal Showdown
A federal high court in Lagos had previously issued an order of Mareva on October 22, 2025, authorizing First Trustees and its subsidiary, FBNQuest Merchant, to take control of the companies’ assets.
Justice D. I. Dipeolu issued the injunction against the defendants—Nestoil and its affiliate, Neconde Energy, as well as Azudialu-Obiejesi and Obiejesi.
Dipeolu restrained dealings involving the sum of $1,012,608,386.91 and N430,014,064,380.77—the total indebtedness as of September 30, 2025.
There were additional debts personally guaranteed by Azudialu-Obiejesi, amounting to over N366.8 billion, $61.2 million, $152 million, and N10.4 billion owed to Access Bank, First Bank, and Zenith Bank.
In response, Nestoil and its principal promoters approached a federal high court to set aside the Mareva order granted prior to these developments.
