Supreme Court Reinstates Counsel in $2 Billion Dispute

On January 13, 2026, the Supreme Court of Nigeria unanimously set aside a judgment from the Court of Appeal that disqualified Olanipekun and Banire from representing Necond Energy Limited in a $2 billion debt dispute involving Nestoil Limited. The apex court, led by Justice Idri, affirmed the company's right to appoint its own legal representatives in the case, which challenges the validity of a receivership.

The court ruled that the legal receiver's authority to appoint counsel cannot override the company's right to defend itself through its chosen legal team. The judgment emphasized that the dispute regarding the validity of the receivership does not fall within the general powers granted to receivers under Section 556(3) of the Companies and Allied Matters Act.

The Supreme Court's decision clarifies critical aspects of corporate governance and creditor enforcement, which may influence future insolvency proceedings.