The Economic and Financial Crimes Commission (EFCC) has recovered an additional $40 million from Nestoil Limited in an ongoing investigation involving the oil and gas company, its affiliate Neconde Energy Limited and a consortium of lenders, bringing total recoveries to $100 million.
According to the lenders, the latest payment was made on October 19, 2026, following an earlier $60 million payment reported on August 17, 2026.
The lenders described the recovery as a significant step, although a substantial portion of the indebtedness remains unpaid.
The recovery follows a structured repayment arrangement reached at a meeting chaired by EFCC Chairman, Olanipekun Olukoyede, as part of efforts to resolve the dispute and facilitate repayment to the financial institutions.
The agreement provided a framework for orderly repayment of the outstanding debt, subject to terms agreed by parties and applicable laws.
The lenders welcomed the payment as encouraging and reaffirmed commitment to continued cooperation with the EFCC to ensure full recovery.
“The recovery of funds owed to financial institutions ultimately serves to protect the interests of lenders, depositors and other legitimate stakeholders whose funds are deployed in the financial system,” the lenders stated.
While the $100 million recovery represents substantial progress, the process is not yet concluded.
The consortium comprises Access Bank Plc, Zenith Bank Plc, Ecobank, Afreximbank, First Bank, FCMB, UBA and Union Bank.
The lenders said in June 2026 that Nestoil’s total indebtedness had risen to approximately $1.084 billion and N469.43 billion, despite several restructuring attempts.
According to them, Nestoil had obtained several bilateral credit facilities dating back to 2010, later consolidated under a “Global Club” restructuring arrangement which became effective in 2023.
However, repayment defaults continued, with outstanding obligations at one stage reaching $240.51 million and N141.21 billion.
The dispute escalated in October 2025 when a Federal High Court in Lagos granted a Mareva injunction freezing assets, bank accounts and shares linked to Nestoil, Neconde and their promoters.
Court filings then put the alleged indebtedness at $1.01 billion and N430 billion as of September 30, 2025. The court also appointed Abubakar Sulu-Gambari, SAN, as receiver-manager.
The enforcement led to the sealing of Nestoil’s headquarters on Akin Adesola Street, Victoria Island, Lagos. Nestoil maintained it remained operational and described the matter as a commercial dispute.
The legal battle moved through the Federal High Court, Court of Appeal and Supreme Court.
In June 2026, the Supreme Court set aside interim preservative orders granted by the Court of Appeal and directed parties to return to the lower court. The consortium clarified that the decision did not extinguish Nestoil’s indebtedness.
The latest $40 million recovery therefore represents one of the most significant cash recoveries from Nestoil since the dispute escalated.
