Nestoil Limited has accused FBNQuest Merchant Bank of attempting to take over the oil firm and deliberately refusing to release statements of accounts relating to a disputed $1 billion loan.

This is as the firm moves to appoint ten local and international forensic auditors to scrutinise its bank accounts across Nigeria.

Court documents reveal that Nestoil repeatedly followed up with FBNQuest and the lenders, through emails dated February 6, 2024; March 12, 2024; March 25, 2024; April 20, 2024; and June 1, 2024, requesting statements of accounts, but neither FBNQuest nor any of the lenders provided the statements of accounts to Nestoil.

The debt claims under dispute, based on unverified figures, exceed $1.01 billion and N430 billion.

FBNQuest, being the Facility Agent, was expected to act on behalf of all lenders in the syndicated loan, administering the loans, including coordinating communication between Nestoil and the lenders and maintaining transparency. However, Nestoil claims that the bank (FBNQuest) did not fulfil its fiduciary duties.

Meanwhile, rather than providing the bank statements requested by Nestoil to enable the company to verify its payment obligations to the lenders, FBNQuest approached the court to obtain an ex parte Mareva and receivership orders freezing Nestoil’s assets and shares, bypassing due process and failing to respond to repeated demands for information by Nestoil.

Following the development, Nestoil has demanded a proper forensic reconciliation of its loan accounts with the lenders.

“The amounts presented as representing Nestoil’s debt are incorrect and lack any proper basis. Only a proper forensic reconciliation would reveal whether we are indebted and the precise amount, if any,” the firm stated in its court filings.

Insiders claim that the bank’s move may be aimed at gaining control of profitable oil assets rather than merely recovering debt.

“This is an attempted hostile takeover of Nestoil which is a producing oil asset,” a source said.

Meanwhile, the Mareva and receivership ex parte orders earlier obtained by FBNQuest have disrupted Neconde’s operations.

Foreign lenders and some major banks that granted loans to Neconde Energy, which is also affected by the Mareva and receivership orders, have filed court papers to challenge FBNQuest’s actions.

The actions of FBNQuest and FBN Trustees in failing to provide bank statements to Nestoil, despite repeated requests, and in obtaining ex parte Mareva and receivership orders against Neconde, have raised concerns about the impartiality of facility agents and security trustees who are affiliates of any of the lenders in syndicated loan transactions in Nigeria.

Neconde maintains that its inclusion in FBNQuest’s orders is illegal, as it is already subject to separate proceedings in the Federal High Court. Legal experts warn that ex parte asset freezes in strategic sectors such as oil and gas can destroy value rather than preserve it.

The dispute has broader implications for Nigeria’s investment climate. With global investors wary of regulatory and economic uncertainty, incidents like the Neconde-FBNQuest saga could deter foreign lending, slowing investment in key sectors such as energy, infrastructure, and industrial development.

Calls have intensified for stronger oversight from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to ensure facility agents act transparently and in the interest of all lenders and borrowers.

Legal practitioners are also urging judicial restraint in granting far-reaching ex parte orders that can disrupt operations and threaten employment.

The Neconde-FBNQuest dispute highlights vulnerabilities in Nigeria’s financial system, raising questions about fiduciary responsibility and judicial overreach.

Although FBNQuest may argue it operated within its legal boundaries, the situation gives the impression of a calculated move to wrest control of a lucrative oil asset under the cover of debt recovery. Left unchallenged, such actions risk crippling indigenous enterprises and discouraging foreign investors, reinforcing the call for greater transparency, due process, and accountability across Nigeria’s financial and judicial systems.

Efforts made on Saturday to get the Nigeria Police Force to react to the development were unsuccessful, as the spokesperson for the NPF, Benjamin Hundeyin dod not respond to phone calls by our correspondent.