Supreme Court Restores Counsel in $2bn Debt Dispute

On January 13, 2026, the Supreme Court of Nigeria, led by Justice Moham Idri, overturned a Court of Appeal ruling that had disqualified Chief Wole Olanipekun, SAN, and Dr. Muiz Banire, SAN, from representing Necond Energy Limited and Nestoil Limited in a $2 billion debt dispute involving a consortium of lenders led by FBNQuest Merchant Bank Limited and FBN Trustees Limited. The apex court ruled that the companies have the right to retain counsel of their choice, despite the appointment of a receiver.

The court found that the receiver's authority to appoint counsel was subject to judicial scrutiny and that allowing a receiver to control the companies' legal defense created a conflict of interest. The Supreme Court emphasized that the companies must retain their residual power to defend actions and choose their legal representatives, thereby restoring Olanipekun and Banire's roles in the case.