Supreme Court Upholds Receiver's Powers in Nestoil Case

On April 10, 2026, the Supreme Court of Nigeria issued a unanimous judgment overruling the Court of Appeal's ruling that disallowed the appointment of senior advocates Wole Olanipekun and Muiz Banir to represent Neconde Energy Limited in a legal tussle involving Nestoil Limited. The Court of Appeal had previously ruled on January 23, 2026, that the receiver's appointment by FBNQuest and FBN Trustees was irregular, disqualifying the counsel from representing the company.

The Supreme Court, led by Justice Moham Baba Idris, held that the receiver manager has the authority to appoint counsel and perform functions, including legal representation. The court emphasized that the receiver's powers, as conferred by Section 556 of the Companies and Allied Matters Act, allow for such appointments without prejudice to the substantive suit.

The ruling highlights the legal scope of receivership and the rights of companies to challenge their directors.