Supreme Court to Rule on Company Counsel Rights in Receivership

The Supreme Court of Nigeria is examining a critical legal question regarding the rights of companies in receivership to appoint their own legal counsel. This issue arose from a commercial dispute involving Necond and Nestoil, where Necond allegedly defaulted on a loan of approximately $1 billion.

Following this, a receiver was appointed to manage Necond's assets, leading to a legal battle over whether the company could retain the power to engage independent counsel during the receivership. Necond's legal team, led by Chief Wole Olanipekun SAN, argues that the company, as a separate legal entity, should maintain the right to appoint its own counsel.

Conversely, the receivership team contends that such an appointment undermines the essence of receivership and could compromise creditor interests. The Supreme Court intervened, ordering the parties to return to court to resolve these contentious issues, with a ruling expected on January 26, 2026.