Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
The Economic and Financial Crimes Commission has recovered $60 million from indigenous oil and gas company Nestoil Limited and transferred the funds to a consortium of creditor banks, marking the first major breakthrough in a protracted debt dispute that has embroiled the company in litigation, receivership proceedings, and regulatory scrutiny for more than a year. The recovery, facilitated by operatives of the EFCC Lagos Zonal Directorate 2 led by Head of Investigation Oguzi Moses, followed a high-level meeting convened and chaired by EFCC Chairman Ola Olukoyede, where Nestoil and its lenders agreed to a structured repayment plan as part of ongoing efforts to settle the company's outstanding indebtedness. The payment represents a significant milestone in the commission's commitment to promoting accountability, protecting the interests of financial institutions, and safeguarding depositors' funds, but the consortium of lenders has made it clear that the $60 million represents only the first phase of a much larger repayment process, with a substantial portion of the debt remaining outstanding.
According to sources familiar with the transaction, the consortium comprises Access Bank Plc, Zenith Bank Plc, Ecobank, the African Export-Import Bank (Afreximbank), First Bank of Nigeria Limited, First City Monument Bank, United Bank for Africa Plc, and Union Bank of Nigeria Plc. Nairametrics reported that the lenders said in June 2026 that Nestoil's total indebtedness had risen to approximately $1.084 billion and N469.43 billion, maintaining that the obligations remained outstanding despite several attempts to restructure the facilities. The debt originated from multiple bilateral credit facilities extended to Nestoil dating back to 2010, which were subsequently consolidated under a restructuring arrangement known as the "Global Club" after Nestoil proposed simplifying the administration and repayment of its obligations. The restructuring became effective in 2023, but the lenders alleged that repayment defaults continued, with outstanding repayment obligations at one stage reaching $240.51 million and N141.21 billion.
The $60 million payment is the latest development in a long-running dispute that has drawn the attention of Nigeria's highest courts. In June 2026, the Supreme Court annulled an order by the Court of Appeal freezing the assets of Nestoil and its affiliate, Neconde Energy, in a lawsuit filed by FBN Quest Merchant Bank and First Trustees Limited seeking to recover debts totalling more than $1 billion and N430 billion allegedly owed by Nestoil, Neconde, and their principal promoters, Ernest Azudialu Obiejesi and Nnenna Azudialu-Obiejesi. In October 2025, police officers acting on an order issued by Justice Dehinde Dipeolu of the Federal High Court, Lagos Division, sealed Nestoil's headquarters in Lagos, with the court granting multiple orders freezing the defendants' bank accounts and shares held with more than 20 financial institutions across Nigeria. The court also authorised receiver-manager Abubakar Sulu-Gambari (SAN) to take over Nestoil's headquarters and other identified assets, and directed multiple security agencies to help enforce the receivership.
The EFCC's intervention in the debt dispute came amid growing concerns over the economic implications of the prolonged legal battle. A top official of the agency, who spoke on condition of anonymity, confirmed that the anti-graft agency had to wade into the matter because of its potential impact on Nigeria's financial stability and the non-performing loan portfolios of some of the country's largest banks. The commission's investigation into the alleged criminal aspects of transactions involving Nestoil and its lenders remains ongoing, and the EFCC has reaffirmed its resolve to pursue the investigation to its logical conclusion and ensure the full recovery of depositors' funds in accordance with the law.
The lenders have welcomed the $60 million payment as an encouraging development but have stressed that it represents only a fraction of the outstanding indebtedness. They have reaffirmed their commitment to working closely with the EFCC and other relevant stakeholders to ensure the seamless continuation of the recovery process until the debt is fully liquidated. Sources indicate that an estimated $40 million is expected to be received in the next tranche, but a substantial portion of the debt remains outstanding. The lenders have also committed to providing all relevant documents required by the EFCC for the diligent prosecution of the investigation, while ensuring that the recovery process remains lawful, transparent, and commercially responsible.
The development comes months after the Federal High Court in Abuja vacated orders restraining the EFCC from investigating two companies affiliated with the Nestoil Group. On April 15, 2026, Justice P. Lifu set aside earlier ex parte orders that had barred the commission from investigating Amaranta Oil & Gas Development Company Limited and Jones Creek Hydrocarbon Limited, freezing their bank accounts or taking enforcement action against them. The orders had initially been obtained in February and March by the two companies amid the wider dispute involving Nestoil, its lenders, and the court-appointed receiver. Jones Creek Hydrocarbon Limited is the technical operator of Oil Mining Lease 42 (OML 42), a major joint venture involving the Nestoil Group and the Nigerian government. Following the April ruling, the court directed that the two cases be given accelerated hearing, effectively clearing the way for the EFCC to continue its investigation into alleged financial and criminal activities linked to the Nestoil Group and its affiliates.
The $60 million recovery represents a significant victory for the EFCC and a warning to corporate entities that the era of impunity in debt default is ending. But for the consortium of lenders, the battle is far from over. With more than $1 billion still outstanding, the EFCC's investigation continues, and the pressure on Nestoil to honour its obligations is only set to intensify. As one source close to the matter put it, "This is just the beginning." The question now is whether Nestoil can sustain the momentum of the repayment plan, or whether the commission will be forced to escalate its enforcement actions to recover the billions still owed to Nigeria's financial institutions.
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