Nigeria’s judiciary and promoters of oil and gas giant Nestoil Limited stand accused of orchestrating a campaign of pressure and alleged bribery to undermine a Federal High Court order freezing billions in assets over a massive debt dispute. The controversy deepened last Friday when Justice Deinde Dipeolu suspended proceedings in the high-stakes case, citing a petition of bias filed against him by Nestoil’s chairman, Ernest Azudialu-Obiejesi.
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The multi-billion-naira suit, filed by FBNQuest Merchant Bank Limited and First Trustees Limited, subsidiaries of First Bank of Nigeria Limited, seeks recovery of an alleged $1.01 billion and N430 billion in debts from Nestoil, its affiliate Neconde Energy Limited, and the Azudialu-Obiejesis. Court documents reveal the loans were extended to Obijackson Group entities and secured by assets, shares, and oil-field interests, including a 45% stake in Oil Mining Lease (OML) 42.
The flashpoint came on October 22, 2025, when Justice Dipeolu issued a sweeping Mareva injunction freezing Nestoil’s assets, bank accounts, and shares across more than 20 institutions, including Citibank Nigeria, GTBank, Stanbic IBTC, Polaris Bank, Providus Bank, Fidelity Bank, and the Central Securities Clearing System (CSCS). The order also barred the defendants from disposing of or interfering with properties.
In a bold enforcement move, the judge appointed Abubakar Sulu-Gambari (SAN) as receiver-manager, empowering him to seize Nestoil’s headquarters at 41/42 Akin Adesola Street, Victoria Island, Lagos, and other assets. Justice Dipeolu directed the Nigeria Police Force, Nigerian Navy, and State Security Service (SSS) to assist and instructed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian National Petroleum Company Limited (NNPCL) to grant the receiver access to OML 42 operations.
Armed police promptly sealed Nestoil’s Lagos office in late October, amplifying the dispute’s intensity and drawing widespread media scrutiny.
Just nine days later, on October 31, 2025, Azudialu-Obiejesi penned a scathing petition to the Chief Judge of the Federal High Court, Justice John Tsoho, accusing Justice Dipeolu of “obvious bias and judicial misconduct.” In the nine-page document obtained by multiple outlets, the Nestoil chairman claimed the judge’s rulings in this and prior cases, such as Suit No. FHC/L/CP/1439/2025 involving Aries Energy, were “far-reaching, stifling, and overreaching,” issued at ex parte levels without proper jurisdiction or consideration of statute-barred claims.
“We do not believe that we can obtain justice from the learned Judge in the circumstances as his manifested bias and partiality against us is too glaring and obvious,” Azudialu-Obiejesi wrote. He highlighted alleged irregularities, including ex parte orders in winding-up proceedings contravening Supreme Court precedents like Honeywell Flour Mills Plc v. Ecobank Nigeria Ltd (2016), and jurisdiction over simple contractual debts better suited for state high courts.
The petition lamented that cases against his firms “mysteriously find their way” to Justice Dipeolu’s court within 24 hours of filing, eroding confidence in the process. It urged the judge’s recusal, arguing that even the “appearance of bias is as serious as actual bias.”
During Friday’s hearing, Justice Dipeolu disclosed the petition to the parties, informing them he had forwarded it to Chief Judge Tsoho and would halt further action pending review. This abrupt adjournment has fueled explosive claims from judicial insiders and whistleblowers, as reported by Premium Times, TheCable, and SaharaReporters.
Sources allege Nestoil’s promoters, frustrated by Justice Dipeolu’s refusal to vary the injunction, intensified a pressure campaign on Chief Judge Tsoho to reverse the order or reassign the case. TheCable cited insiders linking top lawyers to efforts to secure a favourable judge, with the name of a proposed judge, reportedly Justice Ambrose Lewis-Allagoa, disclosed alongside weighty allegations withheld for legal reasons.
Premium Times quoted a whistleblower describing attempts to shift the matter to a more pliable judge, targeting Dipeolu for his independence. “The judge was targeted precisely because he refused to do anyone’s bidding,” the source said.
SaharaReporters escalated the narrative, claiming Justice Tsoho himself faces bribery accusations. Insiders alleged the Chief Judge, furious at Dipeolu’s merit-based ruling, plotted to reassign the case after Nestoil allegedly paid a bribe. “Justice Tsoho was not happy that Dipeolu refused to comply with his instruction to tilt the ruling in favour of Nestoil,” a source told the outlet. The petition, they claimed, was engineered by Tsoho as a pretext to transfer the suit to a loyal judge like Lewis-Allagoa, bypassing normal appeals to the Court of Appeal.
“This is a classic case of manipulation, designed to punish a judge for independence and merit as well as reward a litigant for bribery,” another insider remarked. Reports noted Tsoho’s long-standing ties to Azudialu-Obiejesi, with past links to questionable reassignments in sensitive cases. Efforts to reach Justice Tsoho for comment were unsuccessful.
Amid the turmoil, Nestoil filed a separate application in the Federal High Court, Abuja, to set aside the Lagos order and block the receiver’s enforcement. The defendants argue the receiver’s appointment over Neconde is invalid, as Nestoil’s lenders hold only a junior, subordinated charge to Neconde’s primary $500 million facility, which remains unliquidated.
As the Chief Judge reviews the petition, all eyes remain on whether administrative intervention will prevail over appeals or if investigations into the bribery claims will unearth deeper corruption.
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