Nigerian oil and gas companies Nestoil Limited and Neconde Energy, along with their owners, are seeking a refund of $40 million allegedly paid to a team of senior lawyers following an unfavorable judgment at the Supreme Court, according to sources familiar with the matter.
The demand follows the Supreme Court’s decision in a long-running dispute involving debts estimated at about $2 billion owed by the companies to a consortium of Nigerian banks. The ruling has significantly weakened efforts by the firms to avoid repayment of the outstanding liabilities.
Sources said the companies had retained prominent legal practitioners, including Wole Olanipekun, Bode Olanipekun, Muiz Banire and Ojukwu Chikaosula, with the expectation of securing a favorable outcome at the apex court. It was alleged that the companies mobilized and paid approximately $40 million in legal fees and related expenses for that purpose.
The Supreme Court, however, ruled against the companies, ordering that the matter return to the Court of Appeal to resolve issues relating to legal representation. Despite this procedural step, the court reportedly affirmed that the debt owed to the banking consortium remains payable.
Following the loss at the Supreme Court, insiders said Nestoil and Neconde are now pressing for a refund of the $40 million, arguing that the anticipated outcome was not achieved. The lawyers involved have not publicly responded to the allegations or the reported refund demand.
The dispute over the debt has spanned several years and multiple levels of the Nigerian judicial system. The banks involved have maintained that the loans were validly extended and remain unpaid, while the oil companies have challenged enforcement efforts through various legal applications.
According to sources, similar tactics were allegedly employed earlier at the Federal High Court during proceedings linked to a separate debt estimated at about $1 billion. In that case, an order had been issued restraining Nestoil Limited and its affiliates from dealing with certain assets pending resolution of the dispute.
It was alleged that the restraining order was later vacated after payments were made to influence the process, though these claims remain unproven and have not been established by any court. Justice John Terhemba Tsoho, now the Chief Judge of the Federal High Court, has not publicly addressed the accusations.
The oil companies have consistently denied wrongdoing in their handling of the debt disputes. They have argued in court filings that procedural and contractual issues justify their resistance to enforcement actions by the banks.
The banking consortium, on the other hand, has accused the companies of using prolonged litigation to delay repayment and frustrate creditors. Bank representatives have said the debts, accumulated through project financing and other credit facilities, pose significant risks to the financial system if left unresolved.
Legal analysts note that the Supreme Court’s decision marks a critical turning point in the case. While the matter will return to the Court of Appeal on limited issues, the apex court’s position on the obligation to repay the debt is expected to guide further proceedings.
Observers say the refund demand, if accurate, underscores the growing tension between the oil firms and their legal advisers following years of high-stakes litigation. It also reflects the financial strain facing the companies as enforcement of the debt becomes increasingly likely.
As the case continues, attention is expected to focus on the outcome at the Court of Appeal and on whether the banking consortium will move swiftly to recover the outstanding sums. For now, the Supreme Court ruling has narrowed the options available to Nestoil and Neconde as they confront liabilities running into billions of dollars.
