In a significant legal development, the Supreme Court of Nigeria has dealt a major blow to appeals filed by Nestoil Limited, Neconde Energy Limited, and prominent business figures Ernest Azudialu-Obiejesi and Nnenna Obiejesi. The apex court has ordered the parties to return to the Court of Appeal, delaying their bid to overturn a debt recovery case.
Court Orders Return to Lower Court for Clarification
The Supreme Court panel, sitting in Abuja on Monday, 13th January 2026, directed the litigants to go back to the appellate court. The presiding Justice, Inyang Okoro JSC, issued the order alongside other justices including Jauro, Sankey, Adumehin, and Sadiq Umar. The core issue to be resolved by the Court of Appeal is the question of legal representation for the companies involved.
The Supreme Court mandated the lower court to settle this procedural matter and report back on 26th January 2026. This move effectively puts the substantive appeals on hold until the representation dispute is cleared.
A Strong Warning to Debtors and Their Lawyers
Beyond the procedural order, the Supreme Court bench issued a powerful cautionary statement. The justices emphasized that in matters of debt recovery, the primary focus should be on encouraging the debtor to settle their obligations. The court strongly discouraged the filing of what it termed "frivolous Appeals and Applications" meant to delay or avoid repayment.
This pronouncement sends a clear and unequivocal signal to both corporate and individual debtors, as well as their legal counsel, across Nigeria. The judiciary's stance is that "a debt owed must be paid," and legal technicalities should not be used to obstruct legitimate recovery processes.
Legal Heavyweights Clash in Courtroom
The proceedings featured a lineup of some of Nigeria's most senior advocates, highlighting the case's importance. The representation for the appellants was under challenge. Purporting to represent Neconde was Chief Wole Olanipekun SAN, while Muiz Banire SAN appeared for Nestoil. However, their authority was contested by Ayo Olorunfemi SAN leading a team for Neconde and Ayoola Ajayi SAN leading for Nestoil.
Other notable Senior Advocates present included Chinonye Obiagwu SAN for Ernest Obiejesi and Kehinde Ogunwumiju SAN leading a team for Nnenna Obiejesi. Also present in court was the Receiver/Manager, Abubakar Sulu-Gambari SAN. The respondents, FBNQuest Merchant Bank Limited and First Trustees Nigeria Limited, were represented by a team led by Babajide Koku SAN and Victor Ogude SAN.
The outcome of this case is being closely watched by Nigeria's financial and corporate sectors. It underscores the judiciary's growing impatience with prolonged debt disputes and sets a precedent for future recovery cases. All eyes will now be on the Court of Appeal as it prepares to resolve the representation issue ahead of the January 26th reporting date.
