Court Issues Ruling Preventing EFCC from Investigating Nestoil Affiliate

The Federal High Court of Nigeria, situated in Abuja, has directed the Economic and Financial Crimes Commission (EFCC) to refrain from interfering with the operations of Jones Creek Hydrocarbon Limited, a subsidiary of Nestoil Group, and from freezing its financial accounts.

In an interim injunction issued on February 25, the court prohibited the country’s leading anti-corruption agency from applying for an interim forfeiture or a Mareva injunction, as well as from taking any action against the company until the hearing and decision on its motion for interlocutory injunction.

Legal experts and anti-corruption proponents have expressed surprise at this ruling, describing it as extraordinary and atypical for a judge to preempt law enforcement activities and limit their constitutional functions.

Jones Creek Hydrocarbon operates as the technical operator of the Oil and Mining Lease (OML) 42, a joint venture with a 55 percent stake held by the Nigerian government. Neconde Energy, which is entangled in legal challenges at the Supreme Court and the Court of Appeal alongside Nestoil Group regarding a multi-billion naira debt default, also holds a stake in OML 42.

Nestoil and Neconde's principal promoters include Azudialu Obiejesi and Nnenna Azudialu-Obiejesi. Reports indicate that Nnenna Obiejesi has significant control over Jones Creek Hydrocarbon, possessing a 50 percent interest in the firm.

Judge P.O. Lifu additionally issued an order preventing the defendants — namely FBN Quest Limited, First Bank of Nigeria, Access Bank, Zenith Bank, and Abubakar Sulu-Gambari — from seeking, initiating, or procuring the EFCC or any law enforcement body to interfere with or investigate, freeze, seize, disrupt, or otherwise affect the operations, assets, funds, and interests of Jones Creek Hydrocarbon.

These financial institutions are involved in a debt recovery lawsuit worth over $1 billion against Neconde and Nestoil. Mr. Sulu-Gambari serves as the receiver/manager appointed by these creditors over both companies. A return date for this case has been set for March 11.

In an originating summons filed on February 23, Jones Creek Hydrocarbon requested a ruling that would prevent the EFCC and other defendants from disrupting its operations and assets in line with the Petroleum Industry Act (PIA) 2021.

Other entities included as defendants in the suit are Glencore Energy, Fidelity Bank, African Finance Corporation, and Hydeco Energy Services.

Jones Creek argued that the provisions of the PIA prohibit any action impacting upstream oil and gas activities without consent from the Nigerian Upstream Petroleum Commission.

Section 25 of the PIA 2021 states that any government ministry or agency must consult with the Commission before exercising any authority or implementing any actions that could directly impact upstream petroleum operations.

Jones Creek Hydrocarbon also claimed the powers of the EFCC regarding forfeiture proceedings arising from illegal acts under the EFCC Act, or similar statutes, do not extend to its operations as a technical partner under the agreement established by the Nigerian Government for the efficient operation of OML 42.

Furthermore, the EFCC is not permitted to act as a recovery agent regarding any complaints made by the defendants pertaining to the plaintiff or its affiliates.

Jones Creek further demanded that, since FBN Quest Limited, First Bank of Nigeria, Access Bank, and Zenith Bank are involved in lawsuits against Neconde and Nestoil in various courts, they cannot invite the EFCC to investigate or take any action against Jones Creek Hydrocarbon until the resolution of these matters.

The company expressed concern that disrupting operations at OML 42 would adversely affect its technical machinery, equipment, and expatriate personnel, and could result in a loss of approximately 7.5 percent of Nigeria's crude oil production.

The defendants stand to have no disadvantage by awaiting the court's decision, which will clarify the rights of all parties.

In related developments, the ongoing debt recovery litigation involves FBN Quest Merchant Bank and First Trustees attempting to recover debts exceeding $1 billion and N430 billion reportedly owed by Neconde, Nestoil, and their key figures.

As part of this recovery effort, the financial institutions have appointed Mr. Sulu-Gambari as receiver/manager for both Nestoil and Neconde.

The Federal High Court had previously ordered a Mareva injunction, leading to a freeze of the company's accounts and holdings across more than 20 financial and corporate institutions, while various security agencies were tasked with enforcing this receivership.

This particular order allowed the receiver/manager to take charge of Nestoil's headquarters and other assets while also overseeing Neconde's stake in OML 42, jointly operated with NNPC Limited.

The receiver officially took possession of Nestoil's headquarters on October 22, 2025.

Due to allegations of bias and misconduct against Nestoil and Neconde, the case was reassigned to a different judge, and on November 20, 2025, the new judge, Justice J. Osiagor, revoked the earlier enforcement order. An appeal against this decision was made by FBN Quest Merchant Bank and First Trustees on November 22, 2025.

On November 29, 2025, the Court of Appeal issued a retraining order against Justice Osiagor's decision, preventing Nestoil and Neconde from obstructing the receiver/manager until the appeal is heard.

On January 12, the Supreme Court ordered all involved parties to return to the Court of Appeal to address a significant procedural issue, specifically regarding legal representation.

The Court of Appeal subsequently disqualified lawyers representing Neconde and Nestoil on January 23, ruling that the receivership had suspended the powers of Mr. Azudialu-Obiejesi.