The Supreme Court on Monday dealt a significant setback to Nestoil Limited, Neconde Energy Limited, and oil magnates Ernest Azudialu-Obiejesi and Nnenna Obiejesi, ordering all parties to return to the Court of Appeal for resolution of a critical procedural issue.
In a ruling delivered by a five-member panel of the apex court, presided over by Justice Inyang Okoro, the justices directed the Court of Appeal to first determine the controversy surrounding legal representation in the matter before reporting back to the Supreme Court on 26 January 2026.
Other justices on the panel were Justice Haruna Jauro, Justice Helen Ogunwumiju Sankey, Justice Mohammed Adumehin and Justice Sadiq Umar, all of whom concurred with the lead ruling.
The dispute arose from ongoing debt recovery proceedings involving Nestoil and Neconde, two major players in Nigeria’s oil and gas sector, as well as their principal promoters, Ernest and Nnenna Obiejesi.
The case has garnered widespread attention due to the magnitude of the financial obligations involved and the high-profile legal teams representing the parties.
During proceedings, the Supreme Court expressed strong disapproval of what it described as unnecessary and frivolous appeals in debt recovery matters.
Justice Okoro cautioned counsel that the proper course in such cases is for debtors to settle their obligations, rather than prolong litigation through technical applications and appeals.
A major issue before the apex court was the challenge to the competence and authority of counsel appearing for the parties.
Wole Olanipekun, SAN, purportedly appeared for Neconde Energy, while Muiz Banire, SAN, represented Nestoil.
Their appearances were, however, challenged by Ayo Olorunfemi, SAN, who led Ame Ogie for Neconde, and Ayoola Ajayi, SAN, who led M.B. Ganiyu for Nestoil.
For Ernest Azudialu-Obiejesi, Chinonye Obiagwu, SAN, announced appearance, while Kehinde Ogunwumiju, SAN, led Ademola Abimbola, SAN, and Chikasolu Ojukwu, SAN, for Nnenna Obiejesi.
Also present in court was the court-appointed Receiver/Manager, Abubakar Sulu-Gambari, SAN, whose role is central to the enforcement of the disputed debt obligations.
Representing FBNQuest Merchant Bank Limited and First Trustees, the creditor institutions in the matter, were Babajide Koku, SAN, Victor Ogude, SAN, and Omosanya Popoola, SAN, leading a team of junior counsel including Toheeb Ipaye, Kamaal Fagbemi, Kehinde Wilkey and Buchi Ofulue.
Legal observers say Monday’s proceedings send a strong signal to corporate debtors and their advisers that the Supreme Court is unwilling to entertain procedural manoeuvres aimed at delaying repayment of acknowledged debts, particularly in high-value commercial transactions.
The matter now returns to the Court of Appeal, which has been tasked with resolving the representation dispute as a preliminary issue before further consideration by the apex court.
