The Economic and Financial Crimes Commission has recovered $60 million from indigenous oil and gas company Nestoil Limited as part of efforts to settle the firm’s long-running financial obligations to a group of Nigerian lenders.
The recovery followed meetings coordinated by the EFCC, during which Nestoil and representatives of the lending institutions reached an agreement on a structured repayment arrangement.
According to sources familiar with the matter, the recovered funds have already been transferred to the lenders. The process was facilitated by Oguzi Moses, head of investigation at the EFCC’s Lagos Zonal Directorate 2.
The lenders reportedly welcomed the payment but stressed that it represents only an initial step, with a significant portion of Nestoil’s outstanding liabilities still unpaid.
A senior EFCC official, who spoke on condition of anonymity, confirmed the recovery and said the commission became involved because of the wider economic consequences of the dispute.
The development comes amid a prolonged legal battle between Nestoil, its affiliate Neconde Energy, and a consortium of financial institutions over alleged debts running into more than $1 billion and N430 billion.
The dispute has involved several court proceedings, including orders relating to the freezing and takeover of Nestoil’s assets. In June, the Supreme Court overturned an earlier Court of Appeal decision concerning the receivership and freezing of assets belonging to Nestoil and Neconde.
The lenders have previously said Nestoil obtained loan facilities from eight financial institutions beginning in 2010 but repeatedly failed to meet repayment obligations. They said a restructuring arrangement introduced in 2023 also failed to prevent further defaults.
The financial institutions have described Nestoil’s distressed loans, reportedly valued at about $2 billion, as a major burden on the balance sheets of some banks.
First Bank, United Bank for Africa and Access Bank were among institutions identified as being significantly affected by the unpaid loans.
The latest $60 million recovery could therefore mark a significant development in efforts to resolve the dispute and reduce the exposure of the affected lenders.
