The Supreme Court on Monday voided an order by the Court of Appeal that had frozen the assets of Neconde Energy Limited, Nestoil Limited, and two other entities. This decision stems from an alleged $1.1 billion debt dispute involving FBNQuest Merchant Bank Limited and First Trustees Limited.

In a unanimous judgment delivered by a five-member panel led by Justice Stephen Adah, the apex court found that the Court of Appeal had overstepped its jurisdiction. The appellate court had granted an ex parte application that effectively restrained the companies' operations and assets.

Justice Adah criticised the Court of Appeal for assuming jurisdiction over a matter not properly before it and for issuing injunctive orders. He also noted the court's misuse of judicial process, particularly after granting a stay of proceedings in a case before the Federal High Court in Lagos.

The dispute originated from debt recovery proceedings initiated by lenders, including FBNQuest Merchant Bank and First Trustees, against Nestoil and Neconde Energy. These proceedings were linked to financing arrangements for oil and gas assets and operations.

Initially, in October 2025, the Federal High Court in Lagos granted an ex parte Mareva injunction freezing the companies’ assets, bank accounts, and shareholdings across more than 20 financial institutions.

Nestoil and Neconde challenged this order, arguing that it had lapsed after 14 days, as per the Federal High Court Civil Procedure Rules, once an application for its discharge was filed. On November 20, 2025, Justice Daniel Osiagor of the Federal High Court ruled that the ex parte order had indeed lapsed by operation of law.

However, on November 29, Justice Yargata Nimpar of the Court of Appeal granted an interim restorative injunction. This injunction returned control of Nestoil’s assets and operations to a receiver-manager appointed by the lenders and nullified actions taken by Nestoil after the Federal High Court's decision, effectively reinstating the Mareva injunction.

The Supreme Court's latest judgment overturns the Court of Appeal's decision. This clears the path for the substantive dispute to proceed before the Federal High Court and restores full control of the companies’ assets and operations to Nestoil and Neconde pending the case's determination.

This ruling represents a significant victory for the oil and gas firms and reinforces the Supreme Court's stance on the limitations of appellate intervention in matters still under consideration by a trial court.