Nigeria Supreme Court Affirms Companies' Right to Counsel in Receivership Dispute

The Nigeria===Supreme Court of Nigeria set aside a Court of Appeal decision that had disqualified Chief Wole Olanipekun and Dr Muiz Banire from representing Neconde Energy Limited and Nestoil Limited, respectively, in a $2 billion debt dispute. The unanimous judgment, delivered by Justice Mohammed Baba Idris, affirmed that a receiver whose appointment is being challenged cannot assume the authority to appoint counsel for the company in the same proceedings, citing a conflict of interest. This ruling restores the companies' right to choose their legal representatives, even after a receiver has been appointed, and is expected to have significant implications for corporate governance and insolvency law in Nigeria. The case stems from an alleged $2 billion indebtedness owed by Neconde Energy Limited and Nestoil Limited to a consortium of lenders led by FBN Holdings===FBNQuest Merchant Bank and FBN Holdings===FBN Trustees Limited, which led to the appointment of a receiver/manager.