Federal High Court Sets Aside Firstbank Appointed Receiver Over Neconde in OML 42

• Declares appointment invalid

Wale Igbintade

The Federal High Court in a landmark ruling yesterday, set aside the purported appointment of the Receiver over Neconde and its interest in Oil Mining Lease (OML) 42 by First Bank.

Delivering judgment in Suit No. FHC/L/CS/2545/2025 (Glencore Energy UK Ltd & Ors v. Abubakar Sulu-Gambari, SAN & Ors), Honourable Justice Osiagor held that Nestoil’s lenders, acting through FBN Trustees, cannot enforce their facility by appointing a Receiver over Neconde or its interest in OML 42 because the Deed of Charge has not yet crystallized.

The Court declared the Receiver’s appointment invalid and ordered it set aside completely. The Court further granted an injunction restraining the lenders from taking any enforcement steps against Neconde or appointing a Receiver over the company or its interest in OML 42 until the Deed of Charge crystallizes.

This decisive ruling provides critical legal clarity and safeguards Neconde’s operations and assets at a time when the company continues to play a vital role in Nigeria’s upstream oil and gas sector.

A spokesperson for the Nestoil Group said:

“We welcome the clear and well-reasoned judgment of the Federal High Court. We remain committed to engaging constructively with all stakeholders and to the continued responsible development of OML 42 for the benefit of Nigeria.”

The judgment reinforces the principle that security interests must crystallize before enforcement rights can be exercised, providing important certainty for Nigerian corporate borrowers and the wider energy sector.

Nestoil Group and Neconde remain focused on operational excellence, value creation, and contributing to Nigeria’s energy security.

About Nestoil Group

Nestoil is a leading indigenous Nigerian energy and infrastructure company with interests spanning oil and gas exploration and production, engineering, construction, and marine services. Through its Neconde Energy Limited, the Group holds significant interests in OML 42 and remains committed to sustainable development of Nigeria’s hydrocarbon resources.