The Supreme Court has set aside an order of the Court of Appeal freezing the assets of Neconde Energy Limited, Nestoil Limited and two others, over an alleged $1.1 billion indebtedness to a consortium of banks led by FBNQuest Merchant Bank Limited and First Trustees Limited.

A five-member panel of the apex court in a judgement on Monday, held that the three-member panel of the appellate court went beyond their powers in granting an exparte application against the appellants.

Recall that the Court of Appeal had on November 29, 2025, granted an interim restorative injunction returning the control of Nestoil’s assets and operations to the Receiver Manager appointed by the banks.

Besides, the appellate court further issued an order freezing the assets of the oil servicing firms, pending the hearing of the substantive suit, and a further stay of proceedings at the trial court.

The order was following an exparte application by the bankers seeking a takeover of the oil firms, over the alleged debt.

Dissatisfied, Neconde, Nestoil and their promoters (Dr Ernest Azudialu-Obiejesi OFR and Mrs Nnenna Azudialu-Obiejesi), approached the Apex court to reverse the order of the appellate court issued against their assets.

Delivering judgement in the appeal, the five-member panel of the apex court agreed with the submissions of Neconde and Nestoil that the lower court erred in law in “entertaining the matter in the manner it did” and their subsequent issuance of an exparte order without any justification.

According to Justice Stephen Adah who delivered the lead judgement, records before the Supreme Court showed that the process of transmitting an appeal was not yet completed as at the time the appellate court assumed jurisdiction.

While emphasizing that a Notice of Appeal does not amount to a stay of proceedings, the apex court wondered how the lower court could entertain an exparte in a matter that it was not seized of.

“If there was a Notice of Appeal what necessitated its withdrawal for an exparte”, the apex court queried, before warning that courts must be vigilant, circumspect and discreet in issuing exparte orders.

Besides, the apex court faulting the lower court further stated that, “no exception, cause existed nor urgency disclosed that would have warranted the withdrawal of the Notice of Appeal, adding that the exparte order was unwarranted, uncalled for, frivolous and vexatious.

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Noting that abuse of exparte has become a thing of great concern to the judiciary, Justice Adah urged the appellate court against making itself available in such conducts that undermines judiciary.

According to him, the appellate court went ahead to make far reaching order into the substantive matter, while sitting in an interlocutory appeal.

“It was granted at a time when the appeal had not been entered….an appellate court can only be seized of a matter when the appeal has been fully entered.

“Mere filing of a Notice of Appeal does not apply as stay”, Supreme Court held, while pointing out that the substantive matter was still going on at the trial court.

He also warned litigants who use appeal as a tool to frustrate court proceedings and pursue endless litigations, wondering how the bankers who had dragged the oil firms to court can turn around at the appellate court to seek a stay of proceedings at the trial court.

On the first issue, the Supreme Court held, inter alia, that there was no basis or exceptional circumstance warranting the grant of the ex parte order. The Court further held that it was wrong for the Court of Appeal to entertain and grant the application when the records of appeal had neither been transmitted nor the appeal entered, as the trial court remained seized of jurisdiction.

“The first issue is resolved in favour of the appellants”, Justice Adah held.

On the second issue, the Supreme Court held, inter alia, that the application for stay of proceedings brought by the 1st and 2nd Respondents was not made in good faith. The Court observed that the order effectively paralysed proceedings before the trial court and that there was no basis upon which the stay could be sustained.

The apex court held that it found no “compelling justification for the order”, adding that the order only “constitutes misuse of court processes”.

“This appeal is meritorious and it is accordingly allowed…the exparte order issued by the Court of Appeal on November 29, 2025, is accordingly set aside”, Adah declared.

Recall that Justice Dehinde Dipeolu of the Federal High Court in Lagos, had on October 22, 2025 granted an exparte order against Nestoil, Neconde Energy Limited, and the company’s principal promoters — Dr Ernest Azudialu-Obiejesi and Mrs Nnenna Obiejesi.

The court also barred the defendants from accessing funds, shares, or assets held in banks and financial institutions.

In addition, Justice Dipeolu also authorised First Trustees Limited and FBNQuest Merchant Bank Limited, representing a consortium of creditor banks, to take possession of Nestoil’s Assets under receivership.

However, the case was subsequently transferred to Justice Daniel Osiagor, who on November 21, vacated the Mareva injunction on grounds among others that the 14-day order had lapsed.

Dissatisfied, the bankers approached the appellate court to set aside the lifting of the merava injunction.

Delivering ruling on November 29, 2025, the Appeal Court ruled in favour of FBNQuest Merchant Bank Limited and First Trustees Limited, and issued a restorative injunction reversing Justice Osiagor’s decision.

It should be stated that the Supreme Court a few months ago, had also overturned the appellate court’s decision on legal representation and restored the Oil companies right to legal Counsel of their choice while challenging the validity of the receivership itself.

In the lead judgement delivered by Justice Mohammed Baba Idris, the apex court had described it as a “legal anomaly” for lawyers appointed by the receiver-manager to simultaneously represent the companies whose interests were being contested.

The apex court had held that permitting such representation created a clear conflict of interest and undermined the companies’ right to independent legal representation.

Nestoil’s victory is more than a legal triumph. It is a reaffirmation of justice and restoration of order.

An aviation stakeholder group has opined that the solution to Nigeria’s aviation fuel problem is allocating crude oil directly to local refiners.

The Aviation Safety Roundtable Initiative (ASRI) took the position in a statement signed by its President, Air Commodore Ademola Onitiju (rtd).

It maintained that if the government does this, it can cut waste, reduce its own cost exposure, and bring stability to a sector that has resisted it for decades.

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According to the group, “The Nigerian domestic aviation sector currently faces a profound and protracted crisis driven primarily by the escalating cost of Jet A1 fuel, which has remained between N1,650 and N2,037 per litre. This single factor has pushed fuel to nearly half of total airline operating expenses and has forced domestic carriers to raise fares to levels that many Nigerians can no longer afford.

“Rather than to frontally tackle this urgent challenge, the Federal Government has already given away N60 billion in invoice discounts to airlines with no measurable benefit to the industry or the travelling public. The defects are palpable as Jet A1 prices have remained unchanged, airline debts have not reduced and neither have we seen passengers enjoy cheaper fares. The cargo logistics,tourism and hospitality sectors have not experienced growth.

“The aviation ecosystem which is made up of airlines, agencies, concessionaires, ground handlers, received no structural relief from that hollow N60 billion largesse. The ASRTI has therefore recommended a more effective and fiscally responsible alternative. The body said this proposal seeks to focus exclusively on domestic operators and is achievable through the allocation of crude oil directly to local refiners in a Fuel‑for‑Stability Programme which eliminates the N60 billion waste, reduces the government’s cost exposure, and creates a stable fuel‑pricing structure that immediately transforms the economics of the sector.

It added that whether the final feasible fuel price is N300 or slightly above is not the issue instead the strategy is to emplace a stable, predictable supply of crude to local refiners in order to dramatically lower operating costs, enable lower fares, higher passenger traffic, more profitable airlines, stronger aviation agencies, and a healthier fiscally backed ecosystem.

”Lower air fares are not restricted to consumer benefits, they are catalysts for market expansion, passenger traffic growth, higher load factors and the economies of scale that make the business of commercial aviation sustainable.

”A nation of over 220 million people should not continually operate an aviation market accessible only to a narrow segment of its population. Reduced airfares will result in a natural expansion of the market and sustainable sectoral growth.

”This approach is pragmatic and not theoretical. India achieved some of the lowest domestic fares in the world and explosive traffic growth by stabilizing fuel supply and prioritizing structural reforms. Turkey, Indonesia, and Brazil also transformed their aviation sectors by focusing on affordability, volume growth, and ecosystem‑wide efficiency, not piecemeal interventions that deliver no lasting value,” it said.

The Nigerian capital market on Monday achieved a historic milestone with the successful transition to a T+1 settlement cycle, becoming the first market in Africa to implement the shortened settlement framework designed to enhance efficiency, reduce risk, and improve global competitiveness.

Speaking at the T+1 Settlement Cycle Transition Ceremony in Lagos, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, described the development as a defining moment in the market’s evolution. “The era of T+1 has begun. In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles. This achievement signals that Nigeria is prepared to undertake the structural reforms required to compete for global capital,” Agama said.

He added that the reform aligns Nigeria’s capital market with global best practices, where shorter settlement cycles are increasingly being adopted to improve post-trade efficiency, reduce counterparty risk, and strengthen investor confidence. He reaffirmed the Commission’s commitment to continued modernisation of market systems and processes.

In his goodwill message, the Group Chairman of NGX Group, Alhaji Umaru Kwairanga, described the transition as a key step in the ongoing transformation of Nigeria’s capital market. He said the development underscores the shared commitment of stakeholders to strengthening market institutions, deepening investor confidence, and enhancing the market’s role in supporting economic growth and capital formation. “Milestones such as this reinforce confidence in our institutions and demonstrate our collective determination to build a more efficient and globally competitive capital market,” he stated.

Also speaking at the event, the Chairman of Central Securities Clearing System (CSCS) Plc Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, said the transition represents a critical step in the broader evolution of Nigeria’s capital market. He noted that while the achievement marks a significant milestone, it is part of a longer journey toward building a deeper, more liquid, and more globally competitive market capable of supporting sustained economic growth and capital formation.

“While today is a significant milestone, it is not the destination. It is part of a broader journey toward building a deeper, more liquid, efficient, and globally competitive capital market capable of supporting long-term economic growth and capital formation,” he said.

The Managing Director/Chief Executive Officer of CSCS Plc, Shehu Shantali said the milestone reflects the strength and operational readiness of Nigeria’s post-trade ecosystem. He noted that the new settlement cycle would enhance transaction speed, improve liquidity efficiency, and reduce settlement exposure across the market. “This transition is far more than a reduction in settlement timelines. It represents a strategic upgrade to market infrastructure and reinforces our commitment to building a more efficient, resilient, and globally competitive capital market,” he said.

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The ceremony culminated in a symbolic closing gong ceremony marking the official commencement of the T+1 settlement cycle. The event was attended by CEOs of Exchanges market operators, regulators, stockbrokers, and leaders of trade associations across the capital market ecosystem.

The transition follows six months of coordinated industry-wide preparations involving regulators, exchanges, depositories, custodians, registrars, and other market participants, positioning Nigeria among global markets adopting shorter settlement cycles to improve post-trade efficiency and market resilience