“Court Seizes Zenon Petroleum HQ Over N7.2B Debt”

The Court of Appeal in Lagos has ordered the seizure of Zenon Petroleum & Gas Limited’s Victoria Island headquarters following an unpaid judgment debt of N7.2 billion, a move that signals stricter enforcement of corporate financial obligations in Nigeria.

The ruling, delivered on June 26, 2025, directs the attachment of the company’s Victoria Island Towers, after a protracted legal battle between the Asset Management Corporation of Nigeria (AMCON) and Zenon Petroleum. AMCON had earlier secured a Federal High Court judgment against the oil and gas company for failing to settle the debt.

Under the court’s order, Zenon Petroleum’s management, led by Femi Otedola, is prohibited from selling, transferring, or otherwise dealing with the property until the debt is fully paid. A Deputy Chief Registrar has been appointed to oversee the enforcement process and ensure compliance with the judgment.

The case highlights the growing focus of Nigeria’s regulatory and judicial systems on corporate accountability. Experts say such enforcement actions are meant to reinforce financial discipline among high-profile companies in the energy sector, sending a clear message to other firms with outstanding obligations.

Zenon Petroleum now faces the challenge of negotiating with creditors while maintaining operational stability, as the enforcement of the court order could affect its business operations and stakeholders in Lagos’ commercial hub.

Analysts note that the decision could also have wider implications for Nigeria’s business environment, particularly regarding the handling of non-performing debts and the role of AMCON in recovering public and private sector loans.

As the company works to resolve its financial obligations, the seizure of its Victoria Island Towers serves as a cautionary tale for corporate entities across Nigeria: adherence to legal and financial responsibilities is critical to sustaining business operations and investor confidence.

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