Nigerian oil tycoon Ernest Azudialu-Obiejesi's Nestoil has repaid $100 million to a consortium of eight financial institutions, including banks linked to billionaires Femi Otedola and Tony Elumelu, following intervention by the country's anti-corruption agency.
The repayment comes amid a financial dispute involving Lagos-based Nigerian oil and gas company Nestoil, its affiliate Neconde Energy Limited and eight financial institutions seeking to recover debts exceeding $1 billion.
Nestoil paid an additional $40 million on October 19, 2026, following an initial $60 million repayment in August, local news outlet Premium Times reported.
Both payments formed part of a structured repayment agreement reached through negotiations led by Olanipekun Olukoyede, chairman of Nigeria's Economic and Financial Crimes Commission (EFCC), the country's anti-corruption agency.
The lenders include 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), all awaiting further repayments to recover their outstanding loans.
How Nestoil's $1 billion debt dispute began
The dispute dates back to 2010, when Nestoil began obtaining credit facilities from Nigerian banks to finance its oil and gas operations, including investments linked to its affiliate Neconde Energy, which acquired a 45% stake in the OML 42 oil block in the Niger Delta for $585 million in 2011.
From left: Nigerian billionaires Femi Otedola and Tony Elumelu, alongside Nestoil founder Ernest Azudialu-Obiejesi, whose company has repaid $100 million amid a debt dispute involving major Nigerian banks. Image credit/reference: Photo collage: Business Insider Africa
Despite a loan restructuring agreement in 2023, the lenders alleged that Nestoil continued to default on its repayment obligations, prompting legal action to recover the outstanding funds.
By June 2026, the banking consortium claimed that Nestoil's total indebtedness had reached $1.08 billion and ₦469.43 billion ($348.6 million), figures disputed by the company and its affiliates.
Among the creditors are banks linked to some of Africa's wealthiest businessmen, including FirstBank, whose parent company, First HoldCo, is chaired by Femi Otedola; United Bank for Africa (UBA), formerly chaired by Tony Elumelu; and Zenith Bank, founded by Jim Ovia.
The dispute escalated in October 2025 when a Federal High Court in Lagos authorised the appointment of a receiver-manager to oversee identified company assets as part of the lenders' debt recovery proceedings.
Acting on the court order, Nigerian police officers sealed Nestoil Tower, the company's 15-storey headquarters on Akin Adesola Street in Victoria Island, Lagos, on October 28, 2025.
A month later, another Federal High Court judge revoked the receivership-enforcement order, but the lenders appealed and secured a fresh injunction supporting the receiver-manager's authority.
The case reached Nigeria's Supreme Court in June 2026, when the court overturned interim orders issued by the Court of Appeal, clearing the way for Nestoil Tower to reopen after more than seven months of restricted access, although the ruling did not resolve the underlying debt claims.
Police sealed Nestoil's headquarters in Lagos on October 28, 2025, following a court-ordered receivership over a $1 billion debt dispute, as the company assured stakeholders of continued operational stability. Photo credit: X (formerly Twitter).
How the unpaid loans affected Nigerian banks
Nestoil's unpaid loans formed part of the bad-debt exposure affecting major Nigerian lenders, including UBA and FirstBank, with reports linking the banks' exposure to pressure on earnings and dividend payments.
In an August 2026 interview with Nairametrics, First HoldCo chairman Femi Otedola criticised borrowers who obtained loans without intending to repay them, while the banking group continued efforts to recover outstanding debts across its lending portfolio.
EFCC intervention and outstanding repayments
Following a series of court proceedings, Nigeria's Economic and Financial Crimes Commission (EFCC) intervened to facilitate negotiations between Nestoil, its affiliate Neconde Energy and the banking consortium.
The talks resulted in a structured repayment agreement under which the lenders have recovered $100 million, with further payments governed by the terms agreed between the parties.
Even with the recent repayments, more than $1 billion in debt is still under dispute, with lenders continuing efforts to recover the outstanding funds.
The anti-corruption agency's investigation remains ongoing, although authorities have not disclosed a deadline for settling the debt or announced specific penalties for failing to meet the repayment agreement.
Nestoil and Neconde maintain that the matter concerns commercial loan obligations and reject allegations of criminal wrongdoing.
