Bank
FBNQuest’s Billion-Dollar Freeze Unravels: OML 42 Breaks Free as Mareva Injunction Against Nestoil, Neconde Expires
–Legal Experts: Ex Parte Orders Automatically Lapse After 14 Days — Enforcement Now Void
…Corporate Power Struggle Over OML 42 Exposes the Fragility of Interim Judicial Relief in Nigeria
A sudden quiet victory has settled over Nestoil and Neconde. Their offices — once sealed, monitored, and overshadowed by the heavy machinery of FBNQuest and First Trustees — have reopened with renewed activity. Billions of naira once locked in limbo are now accessible again. The dramatic freeze that stalled operations at OML 42 has evaporated, not through courtroom fireworks but through the silent mechanism of the law.
The ex parte orders granted on October 22 by Justice D. I. Dipeolu had allowed the banks to freeze funds, seal premises, and appoint a Receiver to take over operations. The impact was swift and severe: offices shut, crude production threatened, and corporate control seized in a stroke. But under the Federal High Court (Civil Procedure) Rules 2019, such drastic interim relief carries an inbuilt expiry date. Fourteen days after a motion to discharge is filed, the law strips the order of any legal force.
Nestoil and Neconde filed their motion on October 30. On November 13, the orders died a natural legal death.
What had appeared to be the banks’ ironclad grip turned out to be temporary — a procedural illusion bound by time and constitutional safeguards.
Victoria Island had, for weeks, resembled a corporate battleground. Senior Advocate of Nigeria Abubakar Sulu-Gambari, acting as Receiver, walked through seized premises like a custodian of contested billions. Frozen accounts disrupted operations, key decisions were suspended, and OML 42 — a vital crude-producing asset — stood at risk.
But the law is clear: ex parte orders are emergency tools, not instruments of prolonged domination. Under Order 26, Rule 10, they cannot extend beyond fourteen days post–motion to discharge. Section 36(1) of the Constitution reinforces that no party may be deprived of rights indefinitely without being heard. To do otherwise would violate the fair-hearing principle at the heart of Nigerian justice.
With the lapse, any enforcement actions still being carried out became instantly unlawful. Agencies or individuals occupying offices, supervising assets, or restricting corporate activity now lack legal authority. Companies regain autonomy; the banks, if still intent on pressing their claims, must return to court and start afresh.
Legal analysts stress that the brevity of ex parte orders is intentional. “An ex parte order is a temporary shield, not a permanent sword,” one senior counsel explained. “Its lifespan protects fairness. Anything longer would undermine due process.”
For large operators like Nestoil and Neconde, the consequences of extended freezes are not theoretical. Billions of dollars in assets, export schedules, and international business obligations hang in the balance. A prolonged freeze can destabilize operations far more than the underlying dispute itself.
The episode also serves as a cautionary tale for enforcement agencies. Continuing to act after an order lapses exposes them to legal challenge and potential sanctions. Nigerian courts have repeatedly held that enforcement without subsisting authority is unconstitutional.
Across the commercial litigation landscape, Mareva injunctions are well understood as powerful but short-lived. They prevent asset flight but must withstand the strict scrutiny of procedural fairness. Banks often seek them in urgent circumstances — as FBNQuest did, citing an alleged $1 billion exposure — but urgency does not override constitutional limits.
For Nestoil and Neconde, the expiry restores operational stability. For FBNQuest and First Trustees, it closes one chapter and forces a strategic reset. The banks may seek new orders, pursue the substantive case, or recalibrate their approach. The next move could shape not only this dispute but also broader jurisprudence on interim relief.
The corporate world is watching closely. OML 42 is not just another oil asset — it is a pillar of indigenous oil production with national implications. Even a brief freeze affects supply chains, investor confidence, and Nigeria’s energy outlook.
The lesson from this saga is unmistakable: urgency does not trump due process, and interim legal power is inherently temporary. The law’s clock always ticks — and when time runs out, even the most sweeping orders dissolve.
As operations resume on Victoria Island and crude production steadies at OML 42, the drama shifts back to the courts and corporate boardrooms. Will the banks return for another round? Will the court grant fresh relief? Or will the dispute finally move from procedural warfare to substantive adjudication?
For now, the Mareva injunction is dead — but the battle over OML 42 is far from finished.
Alpha Morgan to Host 19th Economic Review Webinar
In an economy shaped by constant shifts, the edge often belongs to those with the right information.
On Wednesday, February 25, 2026, Alpha Morgan Bank will host the 19th edition of its Economic Review Webinar, a high-level thought leadership session designed to equip businesses, investors, and individuals with timely financial and economic insight.
The session, which will hold live on Zoom at 10:00am WAT and will feature economist Bismarck Rewane, who will examine the key signals influencing Nigeria’s economic direction in 2026, including policy trends, market movements, and global developments shaping the local landscape.
With a consistent track record of delivering clarity in uncertain times, the Alpha Morgan Economic Review continues to provide practical context for decision-making in a dynamic environment.
Registration for the 19th Alpha Morgan Economic Review is free and can be completed via https://bit.ly/registeramerseries19
It is a bi-monthly platform that is open to the public and is held virtually.
Visit www.alphamorganbank to know more.
Bank
Separating Fact from Confusion: What Nigerians Need to Know About the 7.5% VAT on Banking Service Fees
In recent weeks, digital-banking customers and social media, especially on Twitter have raised concerns about deductions labelled as “VAT” on transfers and other charges.
Some dangerously false narratives, which when you take a critical look, you’ll clearly see that they have been orchestrated and sponsored by malicious elements, have given the impression that the 7.5% Value Added Tax (VAT) is a new or arbitrary charge introduced by fintechs, or that it applies to the amounts customers send. These claims are misleading and deserve careful clarification which is the purpose of this piece.
First, it’s important to understand how VAT works in Nigeria’s financial sector today. VAT on fees and charges for financial services has long been part of Nigeria’s tax system. The then Federal Inland Revenue Service (FIRS) had issued information circulars on March 31, 2021 where it stated that VAT on Financial Services (Circular No. 2021/04) that most fees, commissions, and charges by financial institutions (banks, insurance companies, brokers) are subject to 7.5% VAT.
This justifies a recent advertorial the Nigeria Revenue Service (NRS) which stated unequivocally that VAT was not newly introduced on banking service charges by recent tax reforms, and that it did not impose a new tax obligation on customers in that regard.
However what was left unsaid in that publication was that on the 12th of December, the tax agency had written to all financial institutions and payment gateways based on past meetings with operators that following from the new Tax Act, they were reminded of their mandatory obligations to collect, deduct and remit VAT at the prescribed rate.
The Agency then gave an 18- day grace period to all players to configure and align their systems while directing full compliance with the directive with effect from January 19, 2026. And so, some fintechs sent messages to their customers in the spirit of clarity and transparency.
It must be said that what has changed is that in a bid to widen the tax net, microfinance banks and fintechs who were not obligated to deduct and remit said VAT before now, have now become compelled to do so. The enforcement and standardised collection of VAT across banks and fintech platforms including mobile transfers, USSD transaction fees, and card issuance fees with compliance deadlines issued by tax authorities. So why anyone would vilify any financial institution obeying the laws of the land beats my imagination.
For those who have raised questions around transparency and wrongly suggesting that fintechs are suddenly imposing new, unexplained costs on users – as it has been explained above, this is a matter of regulatory compliance, not a lack of transparency or customer exploitation. These VAT deductions are not new fees created by the companies themselves, and providers are not arbitrarily raising their prices.
In closing, two things that everyone must bear in mind as we move forward in this new tax climate – all stakeholders including fintech platforms and regulators must communicate better and clearly. Nigerians must refrain from peddling unsubstantiated claims and malicious narratives, it has no benefits for anyone and erodes trust in systems.
FirstBank Introduces Exclusive 500-Seater Bleacher at Carnival Calabar & Festival 2025
Lagos, 26 December 2025 – FirstBank, West Africa’s premier financial institution and financial inclusion services provider, has officially announced its sponsorship of the Carnival Calabar & Festival 2025, unveiling a landmark addition set to redefine the carnival experience — the first-ever private premium seating area at the event.
The highlight of FirstBank’s participation is the construction of a 500-seater premium bleacher, designed to provide comfort, safety, and an elevated viewing experience for carnival enthusiasts.
Speaking on the sponsorship, the Acting Group Head Marketing and Corporate Communications, FirstBank, Olayinka Ijabiyi, noted that the carnival aligns with the Bank’s First@Arts initiative, a platform dedicated to supporting the creative arts value chain across Nigeria. He said, “We recognise the transformative power of the arts, including carnivals, in inspiring people and strengthening national unity. For more than 131 years, we have supported platforms that promote self-expression, social reflection and cultural exchange. Our investment in the Carnival Calabar & Festival demonstrates our commitment to preserving the nation’s rich cultural heritage through First@Arts.”
“As part of our sponsorship this year, we are introducing the first-ever private 500-seater premium bleacher to further elevate the carnival experience. This exclusive seating is designed to provide exceptional comfort and an unforgettable viewing experience for attendees,” Ijabiyi added.
The Chairman of the Cross River State Carnival Calabar Commission, Gabe Onah, also commented on FirstBank’s sponsorship. “FirstBank’s involvement is a strong demonstration of private-sector support for culture and tourism. This partnership not only enhances the overall quality of the carnival but also strengthens its global appeal,” he said.
The Carnival Calabar & Festival 2025 is officially marketed by Okhma Global Limited, the appointed Official Marketer responsible for brand partnerships, promotional engagements, and ticket sales. Okhma Global Limited has partnered with the Cross River State government in delivering Carnival Calabar & Festival for over ten years, playing a key role in strengthening the carnival’s commercial growth and global visibility.
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