Ernest Azudialu faces $1bn debt fight as banks seize Nestoil

Ernest Azudialu-Obiejesi, the tycoon behind Nestoil Group, is at the center of a fast-moving debt dispute after a Lagos court authorized lenders to take control of assets tied to his companies over obligations put at more than $1 billion. Police sealed Nestoil’s headquarters on Victoria Island on Tuesday as court-appointed receivers moved in, according to people at the scene.

The Federal High Court granted a Mareva injunction on Oct. 22 empowering a consortium of banks to assume possession of assets belonging to Nestoil Limited and affiliate Neconde Energy. The order also names Azudialu-Obiejesi and his spouse as promoters. A hearing on the lenders’ substantive motion is scheduled for Nov. 7.

Nestoil said the matter is a commercial dispute before the courts and that the wider group remains operational, urging staff and partners to remain calm even as access to the Lagos tower was temporarily restricted during enforcement. The company did not directly address the size of the alleged debt.

Azudialu-Obiejesi founded Nestoil in 1991 and later launched Neconde Energy, which has operated OML 42 in the Niger Delta. He also chairs the Obijackson Group and runs a philanthropic foundation bearing his family name. Company materials describe Nestoil as Nigeria’s largest indigenous engineering, procurement, construction and commissioning contractor in the oil-and-gas sector.

The receivership highlights mounting pressure on privately held Nigerian energy firms that borrowed heavily during expansion years and now face tighter financing conditions and currency stress. Lenders have become more aggressive in court as they seek to recover large exposures.

Azudialu-Obiejesi had not issued a personal statement as of press time. The court order remains in force pending the next hearing.