The federal high court in Lagos, presided over by Justice Daniel Osiagor, has reversed a Mareva injunction in a $1.01 billion debt recovery suit brought against Nestoil Limited by FBNQuest Merchant Bank Limited.
The ruling followed a petition of bias filed by Nestoil’s chairman, Ernest Azudialu-Obiejesi, against the initial judge, Justice Deinde Dipeolu.
This led to the suspension of proceedings and the reassignment of the case to Justice Osiagor.
At Thursday’s resumed hearing, the plaintiffs’ counsel, Babajide Koku, requested a halt to proceedings pending a Court of Appeal decision on the November 7, recusal of Justice Dipeolu.
However, Nestoil’s counsel, Muiz Banire, argued that filing a Notice of Appeal does not automatically stop court proceedings, citing relevant federal high court procedural rules.
Wole Olanipekun, representing Neconde Energy Limited, emphasized that the chief judge has statutory authority to transfer cases at any stage, and such transfers cannot be appealed.
Osiagor ruled that the ex parte Mareva injunction had expired 14 days after a motion to set it aside was filed, and that the case transfer was not subject to appeal.
He declared that there was no longer a subsisting order, making prior arguments moot.
The matter was adjourned to November 25, for a motion for joinder, and to December 12, for the hearing of pending applications.
The dispute began with a Mareva injunction issued on October 22, by Justice Dipeolu, which froze Nestoil’s assets, bank accounts, and shares across over 20 Nigerian financial institutions.
The order was obtained by FBNQuest Merchant Bank Limited and First Trustees Limited over an alleged $1.01 billion and ₦430 billion debt owed by Nestoil, its affiliate Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu Obiejesi.
Dipeolu had appointed Abubakar Sulu-Gambari, as receiver manager with authority to take possession of Nestoil’s head office in Lagos and other properties, with the Nigeria Police Force, Nigerian Navy, and State Security Service assisting in enforcement. Armed police had reportedly sealed Nestoil’s headquarters in late October.
Nestoil subsequently filed an application at the federal high court, Abuja, seeking to set aside the Lagos Mareva order and halt enforcement actions by the receiver manager.
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