Ernest Azudialu-Obiejesi’s Nestoil Repays $100 Million of $1 Billion Debt to Banks Associated with Otedola and Elumelu

Following an initial $60 million repayment in August, Nestoil paid an additional $40 million on October 19, 2026, according to local news outlet *Premium Times*. Both disbursements were made under a structured repayment agreement brokered by Olanipekun Olukoyede, chairman of Nigeria’s Economic and Financial Crimes Commission (EFCC).

A consortium of creditors—including First Bank, United Bank for Africa (UBA), Access Bank, Zenith Bank, Ecobank, First City Monument Bank (FCMB), Union Bank of Nigeria, and the African Export-Import Bank (Afreximbank)—is awaiting additional payments to clear the remaining balance.

### Origins of Nestoil’s $1 Billion Debt Dispute

The dispute stems back to 2010, when Nestoil began securing credit facilities from local financial institutions to expand its oil and gas operations. This included funding for its affiliate, Neconde Energy, which bought a 45% stake in the Niger Delta’s OML 42 oil block for $585 million in 2011.

Despite restructuring the loans in 2023, lenders alleged that Nestoil defaulted on its commitments, prompting legal action. By June 2026, the consortium stated that Nestoil owed $1.08 billion alongside ₦469.43 billion ($348.6 million)—figures that Nestoil and its affiliates contest.

The creditor group includes prominent institutions tied to some of Africa’s top business figures, such as First Bank (whose parent company, First HoldCo, is chaired by Femi Otedola), UBA (formerly chaired by Tony Elumelu), and Zenith Bank (founded by Jim Ovia).

Escalating the legal battle, a Federal High Court in Lagos authorized the appointment of a receiver-manager over key company assets in October 2025. Consequently, Nigerian police officers sealed Nestoil Tower, the company’s 15-storey Victoria Island headquarters, on October 28, 2025.

The case progressed to Nigeria’s Supreme Court in June 2026. The apex court set aside interim orders from the Court of Appeal, allowing Nestoil Tower to reopen after a seven-month shutdown, though the core debt claims remained uncollected.

### Impact on the Banking Sector

Addressing broad non-performing loans in an August 2026 interview with *Nairametrics*, First HoldCo Chairman Femi Otedola criticized borrowers who take out credit without the intention to pay it back, emphasizing ongoing institutional recovery efforts across lending portfolios.

### EFCC Intervention and Recovery Efforts

Through EFCC-mediated discussions, lenders have recovered $100 million to date under the structured repayment framework. However, over $1 billion remains disputed as financial institutions continue recovery actions.

The EFCC’s investigation remains active, with no set deadline for final settlement or specified sanctions for non-compliance with the repayment plan. For their part, Nestoil and Neconde assert that the conflict remains a strictly commercial dispute and deny any criminal conduct.