Nestoil Neconde headquarters restored after a Supreme Court ruling overturned appeal court orders and returned control of assets and operations

Nestoil Limited and Neconde Energy Limited have regained possession of their corporate headquarters after the Inspector General of Police implemented a Supreme Court judgment restoring control of the companies’ assets, operations and properties to their board-appointed management.

Also read: Conflicting court orders escalate Nestoil, Neconde crisis

The development, which took effect on Thursday, marks a significant breakthrough in a prolonged legal dispute that has attracted considerable attention within Nigeria’s oil and gas industry.

Sources familiar with the matter confirmed that officials of both companies peacefully reoccupied the headquarters, allowing for the immediate resumption of normal business activities.

The restoration of the Nestoil Neconde Headquarters follows a unanimous judgment by the Supreme Court, which set aside orders previously issued by the Court of Appeal that froze the assets of the companies and related entities.

In its ruling, the apex court held that the Court of Appeal exceeded its jurisdiction by granting broad ex parte orders and injunctions in a matter that was not properly before it.

The Supreme Court also criticised what it described as a misuse of judicial process, including the issuance of a stay of proceedings affecting an ongoing case at the Federal High Court.

By overturning the appellate court’s decisions, the Supreme Court effectively returned control of the companies’ operations, assets and properties to Nestoil, Neconde and their duly appointed representatives.

Despite the landmark ruling, the court made clear that it was not determining the substantive dispute between the parties, which remains before the Federal High Court for adjudication.

The legal battle originated from a debt recovery action filed by a consortium of lenders led by FBNQuest Merchant Bank Limited and First Trustees Limited. The lenders allege liabilities exceeding $1.1 billion linked to financing arrangements involving oil assets.

The dispute intensified following the appointment of a receiver-manager, leading to disagreements over asset control, legal representation and possession of key corporate facilities, including the Nestoil Neconde Headquarters.

With the Supreme Court judgment now implemented, both companies have resumed control of their facilities and day-to-day operations while the substantive debt recovery case continues before the Federal High Court.

Also read: Court restores injunction as Nestoil offices repossessed

Industry observers say the ruling represents a powerful affirmation of judicial oversight in corporate disputes, while the outcome of the underlying case is expected to have significant implications for stakeholders in Nigeria’s energy sector.