Drama unfolded at the Court of Appeal in Lagos as a high-stakes $1 billion debt case involving Nestoil and Neconde Energy hit a major snag. Proceedings were dramatically halted when a shocking dispute erupted over which legal teams were actually authorized to represent the companies. This isn’t just about lawyers; it’s about who controls the narrative and potentially billions of dollars!
Here’s a quick rundown of the mess:
- The Big Dispute: Two sets of senior lawyers showed up claiming to represent Nestoil and Neconde, leading to utter confusion.
- The Frozen Assets: The case stems from a $1 billion debt claim that previously led to the freezing of the companies’ assets by a lower court.
- Lower Court Ruling: A judge had previously lifted the asset freeze, ruling that the initial order had expired.
- Appeal Court Intervention: The aggrieved parties appealed, and the Court of Appeal initially restored the freeze and halted further proceedings below.
- The Adjournment: The current crisis over legal representation has forced another adjournment, delaying justice.
Lawyers Clash, Case Grinds to a Halt
Talk about a legal showdown! The Lagos Division of the Court of Appeal saw proceedings come to a screeching halt this Thursday. The reason? A massive disagreement over which legal representation was legit for Nestoil Limited and Neconde Energy Limited. This appeal was lodged by First Trustees Limited and FBNQuest Merchant Bank Limited, who are challenging a previous ruling by Justice Daniel Osiagor.
A $1 Billion Debt and a Frozen Future
Back on November 20, 2015, Justice Osiagor had made a significant decision. He vacated a Mareva injunction, which had effectively frozen the assets of Nestoil, Neconde, and their directors. This freeze was due to an alleged $1 billion debt claim. The judge reasoned that the initial ex-parte order had expired after 14 days, according to the Federal High Court Rules, especially after a motion to set it aside was filed.
The lower court also made it clear that transferring the case to a new judge wasn’t up for debate and that simply filing at the Court of Appeal couldn’t just put everything on hold. As the ruling stated, “There is no longer a subsisting ex-parte order, having elapsed 14 days from the Motion on Notice challenging it. As the order has expired, the arguments of parties affected by the ex-parte order are now mute or academic.”
The Appeal and the Renewed Fight
But FBNQuest Merchant Bank and First Trustees weren’t happy campers. They took their case to the Court of Appeal. On November 26, 2025, they filed a motion seeking a “restorative injunction.” The goal was to undo all actions taken based on the high court’s ruling. And guess what? Justice Yargata Nimpar of the Court of Appeal agreed. She granted their request, immediately reversing steps that had halted receivership. This basically opened the door for Nestoil’s headquarters to be occupied and put a stop to any interference with the receiver’s work. The appellate court also put a hold on any further proceedings in the lower court.
The hearing for the main motion was set for December 4, 2025. But when everyone gathered on Thursday, it was chaos.
Who’s Who in the Legal Zoo?
When the court asked for counsel to announce their appearances, things got messy. Babajide Koku, SAN, and Kunle Ogunba, SAN, showed up for the appellants. But then, Ayoola Ajayi, SAN, announced for the first respondent (Nestoil Limited), while Ayo Olorunfemi, SAN, appeared for the third respondent (Neconde Energy Limited). To add to the confusion, Dr. Muiz Banire, SAN, and Chief Wole Olanipekun, SAN – the same lawyers who represented Nestoil and Neconde in the lower court – also announced their appearances for the same companies!
Further complicating matters, Chinonye Obiagwu, SAN, and Kehinde Ogunwumiju, SAN, represented the third and fourth defendants, and Oluwakemi Balogun, SAN, was there as an interested party. It was a full house of legal eagles, but nobody knew who was actually speaking for whom.
The Plea for Clarity
Ayoola Ajayi, SAN, stepped in, stating the obvious: there was a clear dispute about who was properly authorized. He urged the court to sort it out and pick the right lawyers for each company. Dr. Muiz Banire, SAN, countered, asserting that his representation was never challenged and he was still the lawyer of record from the lower court.
A Veteran Lawyer’s Embarrassment
Chief Wole Olanipekun, SAN, expressed his dismay. “I am embarrassed,” he admitted. “In my 49 years of practice, I have never had a dispute over representation with any lawyer in court.” He explained the background of the appeal and accused the appellants of trying to create confusion by serving documents on lawyers supposedly appointed by the receiver, who weren’t even the official lawyers from the lower court. Olanipekun insisted that since no one had formally challenged his role, he remained the recognized counsel for Neconde Energy Limited.
Justice Nimpar Steps In
Presiding Justice Yargata Nimpar recognized that the issue of legal representation was a roadblock. Before anything else could happen, it had to be resolved. In a ruling given right there on the bench, she stated, “There is an obvious conflict regarding the applications for change of counsel filed on behalf of the first and second respondents. Those applications must be taken first to resolve the issue of legal representation before the court can proceed with any other application.”
She noted that these applications, though not yet ready for a full hearing, had been filed. “Counsels are directed to respond to the applications before the next adjourned date, which is 15 January 2026.” Justice Nimpar also informed everyone that the court would be taking a break due to upcoming programmes in Abuja and the Christmas holiday. “When the court resumes in January, it will be prepared to address all pending matters with full energy.”
A Warning Against Media Hype
When Kunle Ogunba, SAN, tried to bring up some social media reports about the case, Justice Nimpar issued a stern warning. “Anyone who thinks they can go out and publish false narratives in an attempt to intimidate the court is wasting their time,” she declared. “We took an oath before God Almighty, and we are guided by Him. Our interest is justice and nothing else.” This shows the judiciary’s resolve against external pressure.
The case is now set for January 15, 2026, but the battle for legal representation is far from over. This entire saga highlights the complexities and sometimes, the sheer drama, of high-stakes corporate litigation in Nigeria.
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