The Centre for Responsible Governance (CRG) has called for restraint, dialogue, and structured mediation in the ongoing commercial dispute between First Bank of Nigeria and indigenous oil services firm, Nestoil Limited, cautioning that excessive enforcement measures could damage investor confidence and weaken Nigeria’s corporate governance framework.
In a statement issued on Tuesday, the Centre noted that the matter involves a consortium of creditor banks and should not be driven by the unilateral actions of any single institution, particularly when alternative debt resolution mechanisms remain available and viable.
Speaking through its spokesman, Mr. George Obande, CRG expressed concern over what it described as an increasingly aggressive approach to debt recovery, despite indications that some of the creditor banks are open to debt restructuring, rescheduling, and negotiated repayment arrangements.
“This is not a single-creditor dispute,” Obande said.
“There are multiple financial institutions with significant exposure, some of which have shown willingness to pursue restructuring and rescheduling options. It is therefore troubling that one institution appears to be pushing foreclosure and asset takeover in the absence of broad creditor consensus.”
CRG stressed that Nestoil remains a going concern with a producing oil well, arguing that its operational status makes structured repayment a more commercially sound and value-preserving option than aggressive asset seizure.
“A company with a producing oil asset retains the capacity to meet its obligations over time if repayments are properly structured,” Obande noted.
“In such circumstances, commercial prudence favours negotiation and rescheduling, not actions that risk crippling productive assets, eroding enterprise value, and harming creditors, employees, and the wider economy.”
The Centre further warned against the involvement of state security agencies in what remains a commercial dispute still before the courts, noting that such actions send negative signals to both domestic and international investors.
“Corporate actors must exercise restraint and resist the temptation to deploy coercive state instruments in purely commercial disagreements,” the CRG spokesman said.
“Disputes of this nature should be resolved through lawful, transparent processes—not through intimidation, force, or undue pressure.”
According to CRG, Nigeria’s handling of high-profile commercial disputes is under increasing international scrutiny, with significant implications for the country’s investment climate.
“Foreign investors are watching closely,” Obande stressed.
“How Nigeria manages disputes involving major financial institutions and indigenous enterprises speaks directly to the strength of our rule of law and the predictability of our business environment. These matters are best left to the courts to determine, free from spectacle, pressure, or institutional overreach.”
CRG also cautioned the judiciary against issuing excessive or unnecessary interim orders in commercial disputes, warning that inconsistent or over-interventionist judicial actions could undermine confidence in Nigeria’s dispute-resolution framework and discourage foreign investment.
The Centre announced its willingness to serve as an independent mediator between the parties, advocating a balanced resolution that protects creditor interests while preserving enterprise value, jobs, and economic stability.
“Governance is most tested during moments of conflict,” Obande concluded.
“Dialogue, restraint, and respect for due process remain the strongest foundations for sustainable and equitable commercial resolution.”
About CRG
The Centre for Responsible Governance (CRG) is a non-partisan civic and policy organisation committed to promoting transparency, accountability, and strict adherence to the rule of law in public and corporate governance. The Centre advocates responsible conduct by institutions and powerful actors, while encouraging processes that strengthen investor confidence, protect economic value, and uphold democratic and commercial best practices. Oversight and assessment of the conduct of public officials and corporate entities remain central to the Centre’s mandate.
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