Armed police have sealed Nestoil Limited’s Lagos headquarters after the Federal High Court ordered a freeze of the company’s assets over alleged debts amounting to $1.01bn and NGN430bn ($296mn), Premium Times has reported.

Nestoil Limited (NGX:NL) is a Nigerian engineering, procurement, and construction company specialising in oil, gas, and power infrastructure projects.

The Mareva injunction, granted on October 22, authorises receiver-manager Abubakar Sulu-Gambari (SAN) to take possession of assets belonging to Nestoil, its affiliate Neconde Energy Limited, and promoters Ernest and Nnenna Azudialu-Obiejesi across more than 20 banks.

The order also directs security agencies to assist with enforcement and compels affected financial institutions to disclose any funds or investments linked to the defendants within seven days.

A Mareva injunction, also known as a freezing order, is a court measure that prevents a defendant from transferring, hiding, or disposing of assets before a legal judgment is delivered. It is typically granted to preserve assets so that, if the claimant wins the case, there will be funds or property available to satisfy the court’s judgment.

In a statement, Nestoil said the matter is “purely commercial,” pending before competent courts, and under active engagement with lenders and regulators. The company said it “remains fully operational across all business lines” in oil, gas, power, and infrastructure, and that measures have been taken to safeguard staff and meet client obligations. It urged the public to rely on verified communications and expressed confidence in a “fair and lasting resolution.”

The injunction places immediate control of key assets, including Neconde’s interest in Oil Mining Lease (OML) 42, which is operated in partnership with the Nigerian National Petroleum Company Limited (NNPCL), under the receiver. The development could affect production flows and cash receipts from the block. It also increases scrutiny of lender exposure to large energy sector loans amid currency volatility and tight domestic liquidity.