In a decisive ruling that resets one of Nigeria’s most closely watched commercial disputes, the Federal High Court in Lagos has vacated the sweeping ex parte order previously granted against Nestoil Limited and Neconde Energy Limited, restoring both companies to full control of their assets and operations.
Justice Daniel Osiagor, who recently took over the matter, declared that all prior orders issued by Justice Isaac Dipeolu had lapsed by law, stressing that ex parte orders are temporary safeguards—not instruments to cripple businesses or deny fair hearing. He noted that the case is now starting de novo, making the earlier rulings null and void.
The vacated order had placed Nestoil and Neconde under receivership, a move that drew widespread backlash from civil society groups, legal analysts, and industry stakeholders, who argued that it was excessive, improperly granted, and based on incomplete disclosures by the plaintiffs, FBNQuest Merchant Bank and First Trustees.
Senior lenders including, Glencore Energy UK, Fidelity Bank, Mauritius Commercial Bank and Africa Finance Corporation had earlier filed extensive affidavits challenging the legality of the ex parte order. They revealed that Neconde’s interest in OML 42 was already under a first charge in their favour—making it unlawful for any secondary charge to be created without their consent. They insisted that these facts were knowingly withheld from Justice Dipeolu.
When the matter was called , Chief Wole Olanipekun, SAN, appearing for the defendants, urged the court to vacate the order, arguing that the previous ruling had expired after 14 days and could not continue to operate. Justice Osiagor agreed, confirming that all parties would now be heard on merit and that the era of far-reaching orders obtained without full disclosure had come to an end.
This ruling also follows weeks of public criticisms of Justice Dipeolu, whose ex parte decision triggered allegations of judicial overreach. Advocacy groups such as the Nigerian Equity and Justice Movement had condemned the earlier order as “the height of judicial impunity,” citing Supreme Court precedents like Ecobank v. Honeywell Flour Mills that warn against asset-freezing orders that undermine businesses before trial.
With the order now vacated, Nestoil and Neconde have regained full operational independence. Both companies reaffirmed their commitment to transparency, ethical business conduct, and the highest standards of corporate governance. They also signaled readiness to pursue an independent forensic reconciliation of their loan accounts, potentially through the Central Bank of Nigeria’s Consumer Protection Unit.
Industry watchers say today’s ruling signals a reaffirmation of due process and commercial fairness in Nigeria’s judicial system. It also offers reassurance to local and international investors who had been closely monitoring the dispute.
As proceedings begin afresh under Justice Osiagor, stakeholders are hopeful that the court will fully address the substantive issues, including alleged unlawful debits, unexplained penalties, and prolonged refusal by lenders to release detailed account statements.
