The Economic and Financial Crimes Commission (EFCC) has recovered an additional $40 million from Nestoil Limited, bringing the total amount recovered under an ongoing repayment arrangement involving the oil and gas company, its affiliate, Neconde Energy Limited, and a consortium of lenders to $100 million.
The latest payment, reportedly made on October 19, 2026, follows an earlier $60 million payment disclosed on August 17, 2026. Despite the progress, a substantial portion of the companies’ outstanding indebtedness remains unpaid, leaving the recovery process ongoing.
The lenders described the latest payment as a significant development in efforts to recover the outstanding loans, expressing optimism that continued cooperation among the parties would facilitate the settlement of the remaining obligations.
EFCC chairman facilitates repayment agreement
The recovery follows a structured repayment arrangement reached at a meeting chaired by EFCC Chairman, Olanipekun Olukoyede, as part of efforts to resolve the dispute and facilitate the repayment of funds owed to the financial institutions.
The agreement established a framework for the orderly settlement of the outstanding indebtedness, subject to the terms agreed by the parties and applicable laws.
Welcoming the latest payment, the lenders reaffirmed their commitment to working with the EFCC and other relevant stakeholders to ensure that the remaining obligations are settled in accordance with the repayment plan.
They also emphasised that the recovery has broader implications for Nigeria’s financial system, particularly in protecting the interests of financial institutions and other stakeholders whose funds support lending activities.
“The recovery of funds owed to financial institutions ultimately serves to protect the interests of lenders, depositors and other legitimate stakeholders whose funds are deployed in the financial system,” the lenders stated.
Although the cumulative recovery of $100 million represents substantial progress, the lenders acknowledged that the process is far from complete, with a significant portion of the outstanding debt still awaiting settlement.
They maintained that cooperation with the EFCC and other relevant stakeholders would remain central to recovering the outstanding balance.
Lenders' exposure exceeds $1bn
The dispute involves a consortium of eight financial institutions: Access Bank Plc, Zenith Bank Plc, Ecobank, 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.
In June 2026, the lenders disclosed that Nestoil’s total indebtedness had risen to approximately $1.084 billion and N469.43 billion. They maintained that the obligations remained outstanding despite previous attempts to restructure the credit facilities.
According to the lenders, Nestoil had obtained several bilateral credit facilities from the institutions dating back to 2010. The loans were subsequently consolidated under a restructuring arrangement known as the “Global Club” after the company proposed combining the facilities to simplify the administration and repayment of its obligations.
The restructuring took effect in 2023. However, the lenders alleged that repayment defaults persisted after the arrangement was introduced, with outstanding repayment obligations at one stage reaching $240.51 million and N141.21 billion.
The dispute later escalated into a major legal and financial confrontation, culminating in court proceedings and efforts to secure the lenders’ claims against assets linked to the companies and their promoters.
Court orders intensify debt recovery dispute
In October 2025, the Federal High Court in Lagos granted a Mareva injunction freezing assets, bank accounts and shares linked to Nestoil, Neconde Energy and their promoters across several Nigerian financial institutions.
Court filings at the time put the alleged indebtedness at approximately $1.01 billion and N430 billion as of September 30, 2025.
The court also appointed Abubakar Sulu-Gambari, SAN, as receiver-manager and authorised him to take possession of identified assets as part of the recovery process.
Enforcement of the order led to the sealing of Nestoil’s headquarters on Akin Adesola Street, Victoria Island, Lagos, by police officers.
Nestoil subsequently maintained that it remained operational, describing the matter as a commercial dispute being addressed through the courts.
The legal contest progressed through the Federal High Court, Court of Appeal and Supreme Court, with the parties challenging various issues relating to debt recovery, receivership and interim orders affecting Nestoil and Neconde.
In June 2026, the Supreme Court set aside interim preservative orders previously granted by the Court of Appeal and directed the parties to return to the lower court to address the substantive issues in the dispute.
The lenders subsequently clarified that the Supreme Court's decision did not extinguish Nestoil’s indebtedness or invalidate the underlying debt recovery process.
Recovery effort continues despite latest payment
The additional $40 million payment marks another milestone in the lenders’ efforts to recover funds owed by Nestoil and Neconde, following years of credit arrangements, restructuring attempts and litigation.
However, the scale of the outstanding obligations means that the $100 million recovered so far represents only part of the overall debt exposure disclosed by the lenders.
The consortium has reiterated its determination to pursue the remaining balance under the agreed repayment arrangement, working alongside the EFCC and other relevant stakeholders.
For the lenders, the recovery is not only about retrieving the funds owed but also about safeguarding the interests of depositors and other parties whose resources are channelled through Nigeria’s financial system.
With the latest payment secured, attention now turns to whether the repayment arrangement will deliver further recoveries and how the parties will resolve the outstanding financial and legal issues surrounding one of the country’s major oil and gas debt disputes.