The Federal High Court in Lagos has vacated the sweeping ex parte order previously granted against Nestoil Limited and Neconde Energy Limited, restoring both companies to full control of their assets and operations.

Justice Daniel Osiagor, who recently took over the matter, ruled that all prior orders issued by Justice Isaac Dipeolu had lapsed by law.

He emphasized ’hat ex parte orders are temporary safeguards, not instruments to cripple businesses or deny fair hearing. The case will now proceed afresh, rendering the earlier rulings null and void.

The vacated order had placed Nestoil and Neconde under receivership, sparking widespread backlash from civil society groups, legal analysts, and industry stakeholders, who criticized it as excessive, improperly granted, and based on incomplete disclosures by the plaintiffs, FBNQuest Merchant Bank and First Trustees.

Senior lenders, including Glencore Energy UK, Fidelity Bank, Mauritius Commercial Bank, and Africa Finance Corporation, had challenged the legality of the ex parte order, highlighting that Neconde’s interest in OML 42 was already under a first charge in their favour.

They argued that creating a secondary charge without consent was unlawful and that this crucial fact had been withheld from Justice Dipeolu.

In court, Chief Wole Olanipekun, SAN, representing the defendants, urged the vacating of the order, noting that it had expired after 14 days. Justice Osiagor agreed, confirming that all parties would now be heard on merit.

The ruling follows public criticism of Justice Dipeolu, whose ex parte decision was deemed judicial overreach. Advocacy groups, including the Nigerian Equity and Justice Movement, condemned the order as “the height of judicial impunity,” citing Supreme Court precedents warning against asset-freezing orders that undermine businesses before trial.

With the order vacated, Nestoil and Neconde have regained full operational independence. Both companies reaffirmed their commitment to transparency, ethical business conduct, and corporate governance.

They also indicated plans for an independent forensic reconciliation of their loan accounts, potentially through the Central Bank of Nigeria’s Consumer Protection Unit.

Industry observers say the decision signals a reaffirmation of due process and commercial fairness, reassuring local and international investors.

The court will now address substantive issues, including alleged unlawful debits, unexplained penalties, and delays in releasing detailed account statements. (New Telegraph)