Appellate Court Disqualifies Senior Advocates in Nestoil’s $2 Billion Receivership Battle
In a significant procedural ruling, the Court of Appeal in Lagos has disqualified the legal teams led by Chief Wole Olanipekun SAN and Dr. Muiz Banire SAN from representing Nestoil Limited and Neconde Energy Limited. The ruling, delivered on Friday, January 23, 2026, directly impacts the companies’ ongoing high-stakes dispute with a consortium of lenders over an alleged $2 billion debt. The court also struck out all legal processes previously filed by the affected law firms, marking a pivotal moment in the protracted receivership battle.
The appellate court’s decision centered on clarifying the legal authority of Nestoil’s board to engage counsel while the company is under receivership. This ruling resolves a prior controversy that had stalled proceedings, as a separate panel, presided over by Justice Yargata Nimpara, had earlier adjourned a related case to January 15, 2026, precisely due to unresolved questions over valid legal representation for the respondent companies. The latest judgment clears this procedural hurdle, allowing the substantive case to potentially move forward.
The broader legal conflict involves multiple Nigerian banks and the African Export-Import Bank (Afreximbank). Nestoil’s alleged indebtedness is reported to surpass the minimum capital requirement of four internationally licensed Nigerian banks. In prior actions, Nestoil sought restraining orders from the Federal High Court in Abuja to halt receivership proceedings initiated after a Notice of Default was issued. These proceedings were linked to an alleged $1.01 billion and N430 billion debt owed to subsidiaries of First Bank of Nigeria Limited.
This case underscores the complex interplay between corporate governance under receivership and the judicial process. While this dispute unfolds, other major financial and security matters continue to capture national attention, from efforts where the EFCC secures forfeiture of assets in an alleged $42m fraud case to incidents where gunmen kidnap 5 individuals in separate events. The scale of the Nestoil debt, akin to significant international financial interventions like when the EU provided €1.5m for development projects, highlights its substantial impact on the Nigerian financial sector. The court’s firm ruling on procedural compliance sets a clear precedent for similar high-value corporate litigation.
