The legal dispute involving Nestoil Limited, Neconde Energy Limited and a consortium of financial institutions has escalated significantly, with the oil companies set to file a $1.8 billion damages suit against FBNQuest Merchant Bank, First Trustees Limited, First Bank of Nigeria, Access Bank, Zenith Bank, their appointed receiver and other parties over what they describe as the unlawful disruption of crude oil production.
The planned lawsuit comes as another major court battle unfolds, with Drawcok Estate Limited seeking N100 billion in damages over the alleged wrongful seizure of its Lagos property during the enforcement of a court order linked to the ongoing dispute.
Supreme Court ruling deals setback to reassignment bid
In a fresh twist, an attempt by First Bank to secure the reassignment of the ongoing case between FBNQuest Merchant Bank Ltd, First Trustees Ltd and Nestoil/Neconde has failed after the Honourable Chief Judge rejected the application.
The decision was based on the Supreme Court's judgment in Neconde Energy Limited v. FBNQuest Merchant Bank Ltd & 4 Ors., which the Chief Judge said contained no directive requiring the case to be transferred from Justice Osiagor.
According to the ruling, the apex court found no fault with the trial judge and gave no indication that the matter should be reassigned.
Instead, the Supreme Court reportedly criticised the litigation strategy adopted by the applicants, describing their attempt to delay proceedings as being suggestive of ulterior motives and an abuse of judicial process.
Relying on Section 235 of the Constitution, the court held that there was no legal justification to remove the matter from the current trial judge, effectively ending the reassignment effort.
Oil firms allege production losses
Nestoil and Neconde argue that the actions of the banks and their receiver severely disrupted operations at their oil assets.
According to the companies, crude oil production dropped from approximately 60,000 barrels per day to below 40,000 barrels per day following the intervention.
They also claim the disruption halted a planned drilling programme involving the Pathfinder 500 Drilling Rig, resulting in substantial financial losses and broader economic consequences.
The companies contend that the alleged interruption not only affected production volumes but also undermined expansion plans designed to increase output and revenue generation.
With the Supreme Court's decision now reinforcing the ongoing proceedings, the planned $1.8 billion claim is expected to further raise the commercial and legal stakes in one of the country's most closely watched corporate disputes.
Drawcok Estate files N100bn lawsuit
Meanwhile, Drawcok Estate Limited has instituted a separate suit before the Federal High Court in Lagos, demanding N100 billion in damages against FBNQuest Merchant Bank Ltd, First Trustees Ltd, Senior Advocate of Nigeria Abubakar Sulu-Gambari and the Deputy Sheriff of the Federal High Court.
In the suit marked FHC/L/CS/22/26, the company alleges that the defendants unlawfully seized its property, causing significant financial losses, reputational damage and violations of its constitutional rights.
The claimant maintains that the affected properties—located at 41 and 42 Akin Adesola Street and 60 Saka Tinubu Street, Victoria Island, Lagos—were never part of the assets covered by the Common Terms Agreement (CTA) upon which the enforcement order was based.
Drawcok further argues that it was neither a party to the underlying court proceedings nor bound by the orders relied upon by the defendants.
Company alleges forceful takeover
According to court documents, security personnel acting on behalf of the defendants allegedly stormed the property while enforcing the court order.
The plaintiff stated:
"On Monday, October 28, 2025, the Plaintiff's officers and staff received a barrage of calls from Plaintiff's security personnel at its property... that the 1st, 2nd and 3rd Defendants led the 4th Defendant with heavily armed security personnel of the Nigeria Police Force, accompanied by personnel of the State Security Services, to the property in issue, sacked the Plaintiff's security personnel and in a commando fashion broke into the property in issue."
The company further alleged:
"In the process of forcefully gaining access into the property in issue, the Defendants molested the security personnel at the premises, destroyed the plaintiff's electronic gates, mutilated the property by painting inscriptions on the walls to the effect that the property had been taken possession of vide order of the Federal High Court."
Plaintiff alleges court was misled
In an affidavit supporting the suit, Drawcok's counsel, Mr. Akinniyi, argued that the plaintiff's assets had been expressly excluded from the Common Terms Agreement and should never have been subjected to enforcement.
He maintained that the defendants were fully aware of this but nevertheless proceeded with execution.
According to the affidavit:
"The 1st to 3rd defendants deliberately caused the security cameras in the Plaintiff's property to be sprayed with paint, effectively rendering them useless and exposing the property to security risks."
It further alleged:
"The 1st to 3rd defendants also prevented Plaintiff's tenants from gaining access to their offices and equally prevented the Technical Staff manning the building from egress and ingress even to buy food as they have been surviving on snacks since they cannot leave the building unmanned."
Reliefs sought
Drawcok Estate is asking the court to order the immediate restoration of possession of the disputed properties under the provisions of the Sheriffs and Civil Process Act and the Judgments (Enforcement) Rules.
The company is also seeking a perpetual injunction restraining the defendants from further interference with the properties, alongside N100 billion in damages for what it describes as the wrongful execution of the court order.
The multiple lawsuits now add another layer to the already complex legal contest involving Nestoil, Neconde, FBNQuest Merchant Bank and other financial institutions, with billions of naira and dollars in claims hanging on the outcome of the various proceedings.