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Supreme Court Restores Nestoil, Neconde’s Right to Appoint Lawyers in $2bn Debt Dispute
ABUJA — Nigeria’s Supreme Court has overturned a judgment of the Court of Appeal Nigeria, restoring the right of oil firms Nestoil and Neconde to appoint their preferred legal representatives in an ongoing $2 billion debt dispute.
In a ruling delivered on Friday, the apex court set aside the earlier decision which had restricted the companies’ boards from appointing counsel due to receivership.
Court restores legal rights
The Supreme Court held that both companies remain valid legal entities, despite being under receivership, and therefore retain the constitutional right to fair hearing including the freedom to choose their legal representation.
The court specifically reinstated the appointments of:
- Wole Olanipekun (SAN), representing Neconde
- Muiz Banire (SAN), representing Nestoil
Background to the dispute
The case stems from a $2 billion debt claim filed by:
- FBNQuest Merchant Bank
- First Trustees Nigeria Limited
against the oil firms.
Earlier, the Court of Appeal had ruled that the boards led by Ernest Azudialu-Obiejesi lacked the authority to appoint lawyers while the companies were under receivership — effectively invalidating the appearance of their chosen counsel.
Supreme Court’s reasoning
However, the Supreme Court disagreed, ruling that:
- Receivership does not extinguish corporate existence
- Companies still retain fundamental legal rights
- Denying them counsel of choice violates fair hearing principles
Legal battle over representation
The authority of the appointed lawyers had been challenged by:
- Ayo Olorunfemi, who led Ame Ogie for Neconde
- Ayoola Ajayi, who led M.B. Ganiyu for Nestoil
The appeal was filed by Nestoil, Neconde, and their promoters, including Ernest Obiejesi and Nnenna Obiejesi.
What happens next
The Supreme Court had earlier directed parties to return to the Court of Appeal to resolve disputes around representation and report back by January 26, 2026, on outstanding issues.
With this latest ruling, both companies are now free to proceed with their preferred legal teams as the multi-billion-dollar dispute continues.
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