Supreme Court don finally settle one big matter wey dey shake legal and business community for Naija. On Friday, apex court set aside Court of Appeal decision wey disqualify Chief Wole Olanipekun (SAN) and Dr Muiz Banire (SAN) from representing Neconde Energy Limited and Nestoil Limited for one $2 billion debt dispute.
Justice Mohammed Baba Idris deliver unanimous judgment say where legality of receiver appointment dey contested, dat receiver no get power to appoint counsel for company for same proceedings. Matter dey about whether receiver wey lenders appoint fit exclusively determine legal representation of company, even when validity of dat appointment dey under challenge for court.
Supreme Court answer am say no. Justice Idris talk say questions before trial court dey about whether lenders get right to enforce security, appoint receiver, and whether receiver fit lawfully exercise powers under dat appointment. According to court, these matters dey strike at “very foundation” of receivership.
“E go cause conflict of interest,” court hold, “for receiver wey parties wey dem challenge dia rights appoint to also determine legal representation of company for same proceedings.” Court emphasize say receiver authority dey come from same transaction wey dem dey challenge, make am improper for such receiver to control company legal defence.
Court further rule say disputes wey dey challenge validity and scope of receivership no fall inside general powers wey dem give receiver under Section 556(3) of Companies and Allied Matters Act. For such circumstances, court hold say companies no fit strip dem of dia residual powers to defend demselves through dia boards and chosen counsel.
“Defence of action through directors and counsel wey dem retain no fit say incompetent just because dem appoint receiver,” Justice Idris declare. Supreme Court specifically set aside January 13, 2026 judgment of Court of Appeal wey disqualify Olanipekun, Banire, and dia legal teams, while recognize receiver as sole authority to appoint counsel.
Apex court describe decision as erroneous, note say lower court fail recognize inherent conflict for allow receiver wey appointment dey under challenge to determine company legal representation. Case, mark SC/CV/48/2026, stem from alleged $2bn indebtedness wey Neconde Energy Limited and Nestoil Limited owe consortium of lenders led by FBNQuest Merchant Bank Limited and FBN Trustees Limited.
After alleged default, lenders appoint Receiver/Manager to take over companies assets and operations. By affirm say companies fit retain independent legal representation for disputes wey dey challenge receivership arrangements, Supreme Court don clarify critical aspect of corporate governance and creditor enforcement.
Legal experts talk say ruling go shape future insolvency proceedings, especially for cases where legitimacy of receivership appointments dey contested. Matter don dey on for long time, make many pipo dey watch how e go end. Now Supreme Court don talk, e don set precedent wey go affect how companies and lenders relate for Naija.
For business community, dis ruling na big win for corporate independence. E mean say even when receiver dey appointed, company board still get say over who go defend dem for court if dem dey challenge dat receiver appointment. Na principle wey go protect companies from potential abuse.
Justice Idris stress say company no fit, for circumstances where validity of receivership dey in issue, strip am of residual authority to defend itself through counsel wey directors appoint. Dis clarification na important one for corporate law practice for Naija.
As at now, Neconde and Nestoil go continue dia case with Olanipekun and Banire as dia counsel. Debt dispute wey involve $2bn still dey ongoing, but legal representation matter don settle. Supreme Court judgment don restore status quo ante, mean say case go continue from where e stop before Court of Appeal decision.
For legal circles, pipo dey discuss implications of dis ruling. Some senior lawyers talk say e go affect how lenders approach receivership appointments for future. Dem say lenders go need consider dis ruling when dem dey plan enforcement actions against companies wey default.
Matter don show say Supreme Court dey ready protect companies rights even for face of creditor pressure. Judgment reflect balancing act between creditor rights and company autonomy wey dey important for healthy business environment.
Na not every day Supreme Court dey rule on such technical corporate law matters. Dis one na landmark decision wey go enter law books and affect how similar cases go dey handle for future. For now, Nestoil and Neconde don get legal victory, but main debt dispute still dey pending.
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