The Supreme Court has overturned a Court of Appeal ruling that barred Nestoil and Neconde from appointing legal counsel in a $2 billion debt dispute with FBNQuest Merchant Bank Limited and First Trustees. The apex court ruled on Friday that the companies, despite being under receivership, remain valid legal entities with the right to appoint lawyers. This restores the authority of Chief Wole Olanipekun (SAN) to represent Neconde and Dr. Muiz Banire (SAN) for Nestoil. The Court of Appeal had previously suspended the boards' powers to appoint counsel, citing receivership. The Supreme Court nullified that decision, citing a breach of fair hearing. The apex court also directed parties to return to the Court of Appeal to resolve pending issues and report back by January 26, 2026. The appeal was filed by Nestoil, Neconde, and their promoters, Ernest Obiejesi and Nnenna Obiejesi.
This ruling reaffirms that corporate entities retain fundamental legal rights even during financial distress, which may influence how Nigerian students and future legal professionals understand corporate governance and the rule of law. For law students and graduates, the decision underscores the importance of procedural fairness and constitutional rights in commercial litigation.
In a country where business regulations and judicial processes often appear unpredictable, this judgment offers clarity on the limits of receivership and the continuity of legal representation. It may also shape how law faculties teach company law and insolvency, especially as cases like this reflect real-world applications of classroom concepts. Nigerian law students should pay attention to such rulings to better grasp the evolving landscape of corporate legal rights.
