The Court of Appeal, on Friday, January 23, 2026, disqualified Chief Wole Olanipekun (SAN), Dr. Muiz Banire (SAN) and other senior lawyers from representing Nestoil Limited and Neconde Energy Limited in the ongoing legal battle arising from the companies’ mounting US$2 billion debt.
In a ruling delivered on Friday, the appellate court held that the Ernest Azudialu-Obiejesi–led board of directors no longer has the authority to appoint legal counsel for the companies, following the appointment of receivers over Nestoil and Neconde.
The Justices ruled that the powers of the board had been suspended by the receivership, thereby rendering the engagement of Chief Olanipekun, Dr. Banire and their respective law firms invalid.
Consequently, the court granted the applications seeking the disqualification and suspension of the senior advocates from further representing Nestoil Limited and Neconde Energy Limited. The Court of Appeal also struck out all court processes filed by the affected law firms on behalf of the companies.
Nestoil’s debt profile, estimated at about US$2 billion, is said to be owed to a consortium of lenders and, according to banking sources, now exceeds the minimum capital requirement of at least four Nigerian banks with international licences.
Despite the scale of the indebtedness, the court was told that the company, under its former leadership, allegedly showed little commitment to repaying the loans, while taking steps perceived as attempts to dissipate assets pledged as security for the facilities.
