The Supreme Court has set aside the Court of Appeal’s decision disqualifying Chief Wole Olanipekun (SAN) and Dr Muiz Banire (SAN) from representing Neconde Energy Limited and Nestoil Limited in a high-profile $2 billion debt dispute.
In a unanimous judgment delivered by Justice Mohammed Baba Idris, the apex court ruled that a receiver whose appointment is being challenged cannot appoint counsel for the company in the same proceedings.
The court held that doing so would create a clear conflict of interest, as the core issues in the suit strike at the foundation of the receivership itself.
Justice Idris emphasised that companies facing disputed receivership retain the right to defend themselves through their boards and counsel of their choice under the Companies and Allied Matters Act (CAMA).
The ruling overturns the Court of Appeal’s January 13, 2026 decision and restores Olanipekun as counsel for Neconde and Banire for Nestoil.
The case involves an alleged $2 billion debt owed by the two companies to a consortium of lenders led by FBNQuest Merchant Bank and FBN Trustees Limited.
The lenders had appointed a receiver following the alleged default.
This decision is expected to have wide implications for corporate governance and insolvency cases in Nigeria.
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