Supreme Court Overturns Asset Freeze on Nestoil, Neconde

The Supreme Court of Nigeria has set aside an order from the Court of Appeal that had frozen the assets of Nestoil and Neconde Energy, which were alleged to owe approximately $1.1 billion to FBNQuest Merchant Bank and First Trustees. The ruling, delivered on a Monday by a five-member panel led by Justice Stephen Adah, found that the appellate court had exceeded its authority by granting an ex parte application against Nestoil and Neconde Energy.

The Supreme Court accused the appellate court of misusing judicial processes, particularly in issuing an injunction when the matter was not properly before it. The Federal High Court in Lagos had previously granted a Mareva injunction to freeze the companies' assets, but this order was challenged by the companies, arguing that it had automatically lapsed after 14 days.

Justice Daniel Osiagor of the Federal High Court ruled that the ex parte order was no longer valid, leading to the appellate court's interim restoration of control over Nestoil's assets. The Supreme Court's decision allows the matter to continue in trial court.