Key Points

• Receiver returns to Nestoil Tower after appeal court ruling.
• Lenders pursue more than $1bn in alleged debts.
• Nestoil contests the figures and demands forensic reconciliation.

Ernest Azudialu-Obiejesi’s business empire took a sharp hit after the Court of Appeal in Lagos cleared lenders to restore a receiver-manager to Nestoil Tower.

The decision overturned earlier steps taken at the Federal High Court and handed control of the landmark Victoria Island building back to the creditor group.

The receiver moved in on December 1. The action reopened a long and tense dispute over loans tied to Nestoil Limited and Neconde Energy, two companies at the heart of Azudialu-Obiejesi’s oil and gas interests.

Loan Claims Surpass $1 Billion

Court documents filed by FBNQuest Merchant Bank and First Trustees list the companies’ indebtedness at about $1.01 billion and ₦430 billion as of September 30.

The filings also point to additional personal guarantees by Azudialu-Obiejesi that run into hundreds of millions of dollars and naira.

Those figures come from years of syndicated borrowing. The lender group has included Access Bank, Afrexim Bank, Ecobank, First Bank, FCMB, Union Bank, UBA, Zenith Bank, African Finance Corporation, Fidelity Bank, Mauritius Commercial Bank, Glencore UK and others. Many of the loans funded major acquisitions and capital projects.

Oil Sector Pressures Deepen the Rift

A significant portion of the borrowing supported Neconde’s stake in Oil Mining Lease 42 in the Niger Delta, along with real estate projects such as Nestoil Tower.

Cash flow weakened when oil prices dropped, costs increased and output from OML 42 failed to meet projections.

Analysts note that the pattern mirrors challenges facing several local oil producers with heavy dollar obligations.

The appeal court’s ruling stayed further proceedings at the lower court and reversed steps taken under a November 20 order that had briefly given Nestoil an advantage.

The shift restored momentum to the lenders and reinforced their push to enforce the loan terms.

Nestoil Disputes the Debt Figures

Nestoil maintains it is financially sound. The company argues that lenders overstated the figures and insists its accounts need forensic reconciliation.

It has also stressed that its operations remain active and that it plans to challenge the claims in full.

The legal battle continues as both sides prepare for a deeper contest over the true size of the debt and the future of the tower that anchors Azudialu-Obiejesi’s business footprint in Lagos.