A group of Nigerian lenders has placed Nestoil Limited, a major oil and gas service company, under receivership due to an outstanding debt of approximately $1 billion.

The move comes after a Federal High Court order was issued on October 22, 2025.

The Federal High Court in Lagos issued a Mareva injunction, an asset-freeze order, authorizing First Trustees Limited and its subsidiary, FBNQuest Merchant Bank, to take control of Nestoil’s assets.

The injunction, granted by Justice D. I. Dipeolu, targets Nestoil Limited, its affiliate Neconde Energy Limited, and their principal promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.

Following the court’s ruling, police sealed Nestoil’s corporate headquarters on Victoria Island, Lagos, to enforce the receivership and prevent any movement or disposal of company assets.

It was reported that dozens of armed officers secured the premises at 41/42 Akin Adesola Road, while staff were evacuated, watching in bewilderment as the order of possession was carried out.

Founded in 1991 by Ernest Azudialu-Obiejesi, Nestoil is Nigeria’s largest indigenous Engineering, Procurement, Construction, and Commissioning company in the oil and gas sector.

In recent years, however, the company has reportedly struggled with liquidity challenges due to mounting debts to lenders.