The Economic and Financial Crimes Commission has facilitated the recovery of $60 million from Nestoil Limited, with the funds paid to a consortium of lenders as part of efforts to resolve the oil and gas company’s outstanding debt.
Sources familiar with the transaction told Nairametrics that the payment followed a structured repayment arrangement between Nestoil and the lenders. The arrangement was reached under the EFCC’s ongoing investigation into dealings between the company and its creditors.
EFCC Chairman Ola Olukoyede convened and chaired a meeting involving Nestoil and the consortium of lenders. At that meeting the parties agreed on a structured repayment plan. The $60 million already recovered represents only the first phase of the process. Sources indicated that an estimated $40 million is expected in the next tranche.
Investigation and Recovery Process
Operatives of the EFCC’s Lagos Zonal Directorate 2 facilitated the recovery as part of the Commission’s probe into the alleged criminal aspects of the transactions. The development marks a significant turn in a debt dispute that has involved extensive litigation, receivership proceedings and regulatory scrutiny over the past year.
The consortium is understood to have welcomed the $60 million payment while emphasising that it forms only a fraction of the outstanding indebtedness. The lenders are expected to continue working with the EFCC and other relevant parties until the obligations are fully settled. They have also committed to providing documentation required by the Commission as the investigation continues. The EFCC is expected to keep examining the circumstances surrounding the facilities and subsequent defaults even as repayments proceed.
Background to the Dispute
The $60 million payment is the latest chapter in a long-running conflict between Nestoil and a group of Nigerian and international financial institutions over loans extended to the indigenous oil and gas company.
The consortium comprises Access Bank Plc, Zenith Bank Plc, Ecobank, African Export-Import Bank (Afreximbank), First Bank of Nigeria Limited, First City Monument Bank, United Bank for Africa Plc and Union Bank of Nigeria Plc. In June 2026 the lenders stated that Nestoil’s total indebtedness had risen to approximately $1.084 billion and N469.43 billion, and that the obligations remained outstanding despite earlier restructuring attempts.
Nestoil had obtained several bilateral credit facilities from the institutions dating back to 2010. These were later consolidated under a restructuring arrangement known as the “Global Club,” which became effective in 2023, with the aim of simplifying administration and repayment. The lenders alleged that defaults continued after the restructuring, with outstanding amounts at one stage reaching $240.51 million and N141.21 billion.
The dispute intensified in October 2025 when a 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 across several Nigerian financial institutions. Court filings at the time put the alleged indebtedness at approximately $1.01 billion and N430 billion as of September 30, 2025. The court appointed Abubakar Sulu-Gambari, SAN, as receiver-manager and authorised him to take possession of identified assets. Enforcement of the order led to the sealing of Nestoil’s headquarters on Akin Adesola Street in Victoria Island, Lagos, by police officers.
Nestoil maintained that it remained operational and described the matter as a commercial dispute being handled through the courts. The legal contest subsequently moved through the Federal High Court, the Court of Appeal and the Supreme Court. 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 consortium later clarified that the Supreme Court decision did not extinguish Nestoil’s indebtedness or invalidate the underlying recovery process.
The latest $60 million payment is one of the most significant publicly known cash recoveries from Nestoil since the dispute escalated.
Impact on the Banking Sector
Nestoil’s indebtedness has carried broader implications for Nigeria’s banking industry. Several of the lenders recognised substantial impairment charges on their loan books. Five banking groups — Access Holdings, UBA, Ecobank, First HoldCo and FCMB recorded a combined N2.16 trillion in impairment charges in their 2025 financial statements amid higher provisioning for non-performing and distressed loans. Nestoil was identified as one of the major distressed oil and gas exposures contributing to the elevated charges.
First HoldCo alone booked about N748 billion in impairment charges, while UBA recorded about N331 billion in loan-loss provisions. Access Holdings’ impairment charge on loans and advances to customers rose significantly to N287.3 billion, and FCMB recorded net impairment losses on loans of N92.5 billion.
Although the $60 million recovery is meaningful for the lenders, it remains a relatively small portion of the total claimed obligations. Based on the lenders’ previously disclosed figure of $1.084 billion in dollar-denominated debt alone, the payment represents about 5.5 per cent of that amount, excluding the separate N469.43 billion naira obligation.
The structured repayment arrangement facilitated by the EFCC could open a pathway for further recoveries while the wider legal and investigative processes surrounding the debt continue.
