The Supreme Court of Nigeria set aside a previous order that froze the assets of Nestoil Limited, Neconde Energy Limited, and two other companies [1].
The ruling removes a significant legal barrier for the oil firms, which faced the freezing of their assets due to an alleged debt of $1.1 billion [2]. This decision restores control over company assets but has triggered a new conflict between the firms and the court-appointed receiver regarding the ruling's scope.
A five-member panel of the court ruled Monday that the Court of Appeal exceeded its jurisdiction [3]. The panel found that the lower court overstepped its power by issuing an ex parte application to freeze the assets of the four companies [2].
The legal battle centers on an alleged indebtedness to FBNQuest Merchant Bank Limited and First Trustees Limited [2]. While the Supreme Court annulled the freezing order, the appointed receiver/manager continues to contest the implications of the decision.
Nestoil has pushed back against assertions that the receiver still holds authority over the companies. A Nestoil spokesperson said, "Any declaration that the receiver/manager is free to exercise unrestrained power over the company and Neconde or their assets is inaccurate, misleading, and is against current legal realities" [1].
The dispute now shifts to how the ruling affects the receiver's ability to manage the assets in question. The Supreme Court's intervention emphasizes the limits of appellate power when issuing emergency orders against corporate entities, a move that provides immediate relief to the affected oil firms.
“The Supreme Court has set aside an order of the Court of Appeal freezing the assets of Neconde Energy Limited, Nestoil Limited, and two others”
This ruling underscores a critical judicial check on the power of Nigeria's Court of Appeal to issue ex parte orders. By overturning the freeze on assets totaling an alleged $1.1 billion, the Supreme Court has prioritized jurisdictional boundaries over the immediate claims of creditors, potentially setting a precedent for how high-value corporate debts are handled in the Nigerian legal system.
