The Economic and Financial Crimes Commission (EFCC) has facilitated the recovery of $60 million from Nestoil Limited, with the funds paid to a consortium of lenders as part of efforts to resolve the oil and gas company’s outstanding indebtedness.

This is according to sources with knowledge of the transaction who spoke to Nairametrics.

The payment followed a structured repayment arrangement between Nestoil and the consortium of lenders, facilitated by the EFCC as part of its ongoing investigation into transactions between the company and its creditors.

Nairametrics understands that EFCC Chairman, Mr. Ola Olukoyede, convened and chaired a meeting involving Nestoil and the consortium of lenders, during which the parties agreed on a structured repayment plan for the outstanding debt.

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The agreement has already resulted in the recovery of $60 million from Nestoil, which has been paid to the consortium.

However, sources said the payment represents only the first phase of the repayment process, as a substantial portion of the debt remains outstanding. Sources indicated that an estimated $40 million is expected to be received in the next tranche.

What they are saying

Sources familiar with the development told Nairametrics that the recovery was facilitated by operatives of the EFCC’s Lagos Zonal Directorate 2 as part of the Commission’s investigation into the alleged criminal aspects of transactions involving Nestoil and its lenders.

  • The development represents a significant turn in a debt dispute that has been the subject of extensive litigation, receivership proceedings and regulatory scrutiny over the past year.
  • The consortium is understood to have welcomed the $60 million payment while maintaining that the amount represents only a fraction of the outstanding indebtedness.
  • The lenders are expected to continue working with the EFCC and other relevant stakeholders on the recovery process until the outstanding obligations are settled.

Sources also said the lenders have committed to providing relevant documentation required by the EFCC as the investigation continues.

The EFCC is expected to continue investigating the circumstances surrounding the facilities and the subsequent defaults even as the repayment process progresses.

Backstory

The $60 million payment is the latest development in a long-running dispute between Nestoil and a consortium of Nigerian and international financial institutions over loans extended to the indigenous oil and gas company.

  • 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.

Court filings at the time put the alleged indebtedness at approximately $1.01 billion and N430 billion as of September 30, 2025.

The court also appointed Abubakar Sulu-Gambari, SAN, as receiver-manager and authorised him to take possession of identified assets.

The legal battle subsequently moved through the Federal High Court, Court of Appeal and Supreme Court, with the parties contesting several issues relating to the debt recovery process, receivership and interim orders affecting Nestoil and Neconde.

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 latest $60 million payment therefore represents one of the most significant publicly known cash recoveries from Nestoil since the dispute escalated.

What you should know

Nestoil’s indebtedness has also had significant implications for Nigeria’s banking industry, with several of the lenders recognising substantial impairment charges on their loan books.

The recovery of $60 million is therefore significant for the lenders, although it represents a relatively small portion of the total dollar and naira obligations claimed by the consortium.

Based on the lenders’ previously disclosed figure of $1.084 billion in dollar-denominated indebtedness alone, the $60 million payment represents about 5.5% of that amount, excluding the separate N469.43 billion naira obligation.

The structured repayment arrangement facilitated by the EFCC could, however, provide a pathway for further recoveries while the wider legal and investigative processes surrounding the debt continue.