Nestoil Debt: EFCC Facilitates $60m Payment to Lenders

By Adedapo Adesanya

The Economic and Financial Crimes Commission (EFCC) has facilitated the recovery of $60 million from Nestoil Limited, with the funds paid to a consortium of lenders as part of efforts to recover the oil and gas company’s outstanding debt.

According to a report by Nairametrics, the payment followed a structured repayment agreement between Nestoil and the lenders, reached during a meeting convened and chaired by EFCC Chairman, Mr Ola Olukoyede.

The meeting brought together Nestoil and the consortium of financial institutions as part of the Commission’s investigation into transactions involving the company and its creditors.

According to sources cited by the publication, operatives of the EFCC’s Lagos Zonal Directorate 2 facilitated the recovery as part of investigations into alleged criminal aspects of the transactions.

The $60 million payment represents the first phase of the repayment arrangement, with about $40 million expected to be received in the next tranche.

The consortium, which includes Access Bank, Zenith Bank, Ecobank, African Export-Import Bank (Afreximbank), First Bank of Nigeria, First City Monument Bank (FCMB), United Bank for Africa (UBA) and Union Bank of Nigeria, is expected to continue working with the EFCC and other stakeholders to recover the outstanding obligations.

The lenders had previously stated that Nestoil’s indebtedness stood at approximately $1.084 billion and N469.43 billion as of June 2026.

The debt arose from several bilateral credit facilities extended to Nestoil by the financial institutions from 2010. The facilities were subsequently consolidated under a restructuring arrangement known as the “Global Club”, which became effective in 2023.

However, the lenders alleged that repayment defaults continued after the restructuring, resulting in substantial outstanding obligations.

The dispute escalated in October 2025 when the Federal High Court in Lagos granted a Mareva injunction freezing assets, bank accounts and shares linked to Nestoil, its affiliate Neconde Energy Limited and their promoters.

The court subsequently appointed Mr Abubakar Sulu-Gambari, a Senior Advocate of Nigeria (SAN), as receiver-manager and authorised him to take possession of identified assets.

Nestoil, however, maintained that it remained operational and described the matter as a commercial dispute being addressed through the courts.

The legal dispute subsequently progressed through the Federal High Court, Court of Appeal and Supreme Court over issues relating to debt recovery, receivership and interim orders.

In June 2026, the Supreme Court set aside interim preservative orders previously granted by the Court of Appeal and directed the parties to return to the lower court to address the substantive issues.

The lenders subsequently clarified that the Supreme Court decision did not extinguish Nestoil’s indebtedness or invalidate the underlying debt recovery process.

The latest $60 million recovery is therefore a significant development in the prolonged debt dispute, although it represents only a fraction of the total amount claimed by the lenders.

Based on the consortium’s previously disclosed dollar-denominated debt of $1.084 billion, the recovered $60 million represents about 5.5 per cent of that amount, excluding the separate N469.43 billion naira obligation.

The recovery could provide a basis for further repayments under the structured arrangement while the EFCC investigation and related legal proceedings continue.