Court vacates order against Nestoil, others

By Lukman Olabiyi

Justice Daniel Osiagor of the Federal High Court, Lagos, has vacated an ex parte order previously granted against Nestoil Limited and Neconde Energy Limited, restoring both companies to full control of their assets and operations.

Justice Isaac Dipeolu of the same court had on October 22, granted the order.

However, Justice Osiagor, who recently took over the matter, declared that all prior orders issued by Justice Dipeolu had lapsed by law.

The court held that exparte orders are temporary safeguards not instruments to cripple businesses or deny fair hearing.

The court further held that the case is now starting de novo, making the earlier rulings null and void.

The vacated order had placed Nestoil and Neconde under receivership.

The application which resulted to the order was filed by FBNQuest Merchant Bank and First Trustees.

However, senior lenders including Glencore Energy UK, Fidelity Bank, Mauritius Commercial Bank and Africa Finance Corporation filed counter affidavits challenging the legality of the ex parte order.

They revealed that Neconde’s interest in OML 42 was already under a first charge in their favour—making it unlawful for any secondary charge to be created without their consent.

They insisted that these facts were knowingly withheld from Justice Dipeolu.

When the matter was called yesterday ,Wole Olanipekun, SAN, appearing for the defendants, urged the court to vacate the order, arguing that the previous ruling had expired after 14 days and could not continue to operate.

Justice Osiagor agreed, confirming that all parties would now be heard on merit and that the era of far-reaching orders obtained without full disclosure had come to an end.