Supreme Court Vacates Appellate Court’s Order Against Nestoil and Neconde in $1.1B Debt Battle
The Supreme Court vacates Nestoil order in a ruling that has shaken Nigeria’s entire commercial legal system. Nigeria’s apex court delivered a unanimous judgment on Monday, June 1, 2026. This decision has sent shockwaves through the banking and corporate sectors alike.
The case involves a staggering alleged debt dispute worth $1.1 billion. Neconde Energy Limited and Nestoil Limited faced off against a consortium of lenders. FBNQuest Merchant Bank Limited led that powerful creditor group.
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However, the Supreme Court did not simply decide a case on Monday. Their Lordships exposed a dangerous and systemic problem in Nigeria’s courts. GossipShop breaks it down for you right here.
Supreme Court Vacates Nestoil Order and Calls It a “Judicial Tragedy”
The apex court described the Court of Appeal’s actions as a “judicial tragedy.” Let that sink in. Nigeria’s highest court used those exact words about a lower court’s conduct.
The Court of Appeal sitting in Lagos had granted sweeping ex parte orders. Those orders effectively handed control of Nestoil and Neconde’s critical business assets to creditors. The Supreme Court firmly set aside every single one of those orders.
Furthermore, the appellate court had called its own order a “restorative” ex parte order. The Supreme Court was not buying that framing at all. The apex court held it was, in substance, an interlocutory injunction that should never have been granted.
And here is the thing — ex parte orders are meant to be rare emergency tools. They exist for urgent situations where delay causes irreparable harm. They were never designed to strip companies of their assets before a fair hearing.
Meanwhile, banks across Nigeria have increasingly weaponised these orders. They use them to freeze accounts, seize assets, paralyse operations, and install receiver-managers. All of this happens before the affected companies even get to speak.
The Supreme Court said this practice amounts to economic warfare. That is a powerful and deliberate choice of words from the bench. Nigerian businesses are now watching this ruling very closely.
