EFCC recovers additional $40 million from Nestoil, total hits $100 million

The Economic and Financial Crimes Commission (EFCC) has recovered an additional $40 million from Nestoil Limited in an ongoing investigation involving the oil and gas company, its affiliate Neconde Energy Limited and a consortium of lenders, bringing total recoveries under a repayment arrangement to $100 million.

According to the lenders, the latest payment was made on October 19, 2026. This followed an earlier $60 million payment reported by Nairametrics on August 17, 2026.

The lenders described the latest recovery as a significant step towards recovering outstanding obligations owed by Nestoil, although a substantial portion of the indebtedness remains unpaid.

The recovery follows a structured repayment arrangement reached at a meeting chaired by EFCC Chairman, Olanipekun Olukoyede, as part of efforts to resolve the dispute and facilitate repayment to the financial institutions.

The agreement provided a framework for the orderly repayment of the outstanding indebtedness, subject to the terms agreed by the parties and the applicable laws.

The lenders said they welcomed the latest payment as a significant and encouraging development in the recovery process.

They have also reaffirmed their commitment to continued cooperation with the EFCC and other relevant stakeholders towards ensuring the full recovery of outstanding obligations.

According to them, the recovery is significant not only from the perspective of the funds involved but also because of its potential impact on the stability and integrity of Nigeria’s financial system.

While the cumulative US$100 million US dollars recovery represents substantial progress, the recovery process is not yet concluded, as a significant portion of the outstanding indebtedness remains to be settled in accordance with the agreed repayment plan.

The lenders said they remain committed to working with the EFCC and other relevant stakeholders to ensure that the remaining obligations are settled under the agreed repayment plan.

Nairametrics previously reported that 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.

The lenders said in June 2026 that Nestoil’s total indebtedness had risen to approximately $1.084 billion and N469.43 billion, maintaining that the obligations remained outstanding despite several attempts to restructure the facilities.

According to the lenders, Nestoil had obtained several bilateral credit facilities from the financial institutions dating back to 2010.

The facilities were subsequently brought under a restructuring arrangement known as the “Global Club” after Nestoil proposed consolidating the bilateral loans to simplify the administration and repayment of its obligations. The restructuring became effective in 2023.

However, the lenders alleged that repayment defaults continued after the restructuring, with outstanding repayment obligations at one stage reaching $240.51 million and N141.21 billion.

The dispute escalated significantly 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.

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 in the dispute.

The consortium subsequently clarified that the Supreme Court decision did not extinguish Nestoil’s indebtedness or invalidate the underlying debt recovery process.

The latest $40 million, which brings total payment to $60 million, therefore represents one of the most significant publicly known cash recoveries from Nestoil since the dispute escalated.

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