Drama unfolded at the Court of Appeal in Lagos on Thursday after a fierce dispute among lawyers over who is authorised to represent Nestoil Limited and Neconde Energy in a multibillion-naira debt recovery case forced a three-member panel of justices to adjourn proceedings.
The confusion erupted when Wole Olanipekun, SAN, who has represented Neconde since the matter began at the Federal High Court, told the court that he had been abruptly and improperly replaced by a new legal team appointed by the receiver/manager overseeing the companies.
He said he was only served a notice of change of counsel moments before Thursday’s sitting, adding that the appellants, FBN Quest Merchant Bank and First Trustees, indicated in their notice of appeal that one Aleoge Esq had substituted him for Neconde, while M.B. Ganiyu had purportedly replaced Muiz Banire, SAN, as counsel to Nestoil.
“In the record and orders of the lower court, this new set of people appeared for the receiver/manager, not for my client,” Mr Olanipekun argued, insisting that a party retains the right to counsel of its choice.
The proceedings became even more heated when Ayoola Ajayi rose to introduce himself as the newly appointed counsel for Nestoil. He also announced Mr Ganiyu and another lawyer, Yemi Arikawe, as members of his team.
But Mr Banire told the court that Mr Ajayi had filed an application seeking to restrain him from representing Nestoil until the dispute over legal representation is resolved. Allowing a new legal team to take over at this stage, he said, would be “premature” and risk plunging the proceedings “into chaos.”
He maintained that until the appellate court, comprising Justices Y.B. Nimpar, D.Z. Senchi and P.T. Kwanar formally rule otherwise; he remains the valid counsel for Nestoil.
The panel then heard arguments on whether the court should first resolve the representation dispute before attending to the substantive appeal.
Citing several appellate court authorities, Mr Ajayi argued that resolving a dispute over counsel takes precedence, even above the question of jurisdiction.
He said he was properly appointed by the receiver/manager, Abubakar Sulu-Gambari, and had filed an application challenging Mr Banire’s continued appearance for Nestoil.
Presiding Justice Nimpar subsequently adjourned the matter to 15 January 2026, directing all contending lawyers to file affidavits and written addresses justifying their right to appear for Neconde and Nestoil.
Background to the Nestoil debt case
The dispute stemmed from efforts by FBN Quest Merchant Bank and First Trustees to recover debts totalling over $1 billion and ₦430 billion allegedly owed by Neconde Energy, Nestoil, Mr Ernest Azudialu-Obiejesi and Mrs Azudialu-Obiejesi.
As part of the recovery process, the banks appointed Mr Sulu-Gambari as receiver/manager over Nestoil and Neconde.
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Justice Deinde Dipeolu of the Federal High Court subsequently issued a Mareva injunction freezing the companies’ accounts and shareholdings across more than 20 financial and corporate institutions. Multiple security agencies were also directed to assist in enforcing the receivership.
The order empowered the receiver/manager to take possession of Nestoil’s headquarters and other assets, and assume control of Neconde’s interest in OML 42, the oil block it operates jointly with NNPC Limited.
The receiver took possession of Nestoil’s head office on 22 October.
Amid allegations of bias and misconduct by Nestoil and Neconde, Chief Judge John Tsoho reassigned the case to another judge. On 20 November, the new judge, Justice J. Osiagor, revoked the earlier receivership-enforcement order.
The banks appealed on 22 November.
On 29 November, the Court of Appeal, in a ruling delivered by Justice Nimpar, issued a restorative injunction reversing Justice Osiagor’s decision and restraining Nestoil, Neconde and their agents from obstructing the receiver/manager pending the hearing of the appeal.
