TEMPLARS Secures Judgment for Senior Lenders in USD 1.2 Billion Neconde Energy Security Dispute

On 30 September 2026, the Federal High Court of Nigeria set aside a second set of lenders’ enforcement of a deed of charge over those assets. The Court held that the Senior Lenders’ first-ranking security takes priority, and that subordinate security cannot be enforced until senior security is fully realised. It therefore held that the Receiver/Manager’s appointment, and all acts taken under it, were invalid.  

TEMPLARS brought the application after the second set of lenders appointed a Receiver/Manager over assets including Neconde’s OML 42 Joint Venture interest, in breach of a negative pledge in the Senior Lenders’ favour.  

The decision is significant for secured credit transactions because it affirms that negative pledge provisions are effective. 

For guidance, contact TEMPLARS Partners, Olufemi Oyewole, SAN, FCIArb, and Zelda Akindele;  and Managing Counsel, Chidiebere Ejiofor.