The court of appeal has disqualified Wole Olanipekun and Muiz Banire from acting as counsel for Nestoil Limited and Neconde Energy in the $2 billion debt case instituted by FBNQuest Merchant Bank Limited and First Trustees.
Gatekeepers News reports that in its ruling on Friday, the appellate court held that the board of directors led by Ernest Azudialu-Obiejesi no longer has the authority to appoint legal representatives because the companies are under receivership.
The court ruled that only the party that initiated the receivership and appointed the receiver has the legal power to engage counsel on behalf of the companies.
Consequently, the court ordered the disqualification and suspension of Olanipekun, Banire, and other lawyers appointed by Azudialu-Obiejesi, and struck out all processes filed by their respective law firms in the matter.
The Supreme Court had earlier directed all parties to return to the court of appeal to resolve the dispute over legal representation and report back on January 26, 2026, before further issues in the case could be considered.
The appeal to the apex court was filed by Nestoil, Neconde, and their promoters, Ernest Azudialu-Obiejesi and Nnenna Obiejesi.
While Olanipekun was listed to represent Neconde and Banire was to appear for Nestoil, their appointments were challenged by opposing counsel.
The receiver-manager appointed by FBNQuest Merchant Bank and First Trustees, Abubakar Sulu-Gambari, maintained that the receivership suspended the powers of the companies’ promoters.
The legal dispute stems from an October 22, 2025 order of a federal high court in Lagos, which granted a Mareva injunction authorising FBNQuest Merchant Bank and First Trustees to take control of the companies’ assets over alleged debts exceeding $1 billion and hundreds of billions of naira.
Nestoil and its promoters have since filed applications seeking to set aside the injunction.
