The Ibadan Division of the National Industrial Court of Nigeria on Tuesday heard fresh arguments in the protracted legal dispute between former Ogun State local government political office holders and the state government over a judgment debt the affected appointees now estimated to exceed ₦5.5 billion.
The dispute concerns the enforcement of a judgment debt arising from a case instituted by former local government political appointees who served between 2012 and 2015, with the court proceedings involving garnishee orders affecting 18 revenue-holding bank accounts linked to local governments across Ogun State.
The former political office holders secured a judgment on February 14, 2022, directing the Ogun State Government, led by Governor Dapo Abiodun, to pay ₦3.2 billion. The judgment also stipulated an annual interest rate of 15 per cent until the debt is fully liquidated.
Following the government’s unsuccessful appeal against the judgment, the outstanding liability has reportedly risen above ₦5.5 billion in estimation, including accrued interest.
At Tuesday’s proceedings, approximately 25 lawyers appeared for the banks and other financial institutions involved in the garnishee proceedings. Lawyers representing the state government and the affected local governments also appeared through the Ministry of Justice.
During the hearing, counsel for the state government argued that the amount being pursued by the judgment creditors exceeded the sum awarded by the court.
However, when the presiding judge asked the state counsel to state the exact judgment sum, the lawyer was unable to provide the figure immediately.
In response, counsel to the judgment creditors, Romeo Ese and Oladimeji Olowokere, drew the court’s attention to the original judgment and its provision for 15 per cent interest on the outstanding debt until full payment.
The garnishee proceedings follow an order issued about three months ago affecting 18 revenue-holding accounts associated with the Ogun State Government and local governments in the state.
However, the court on Tuesday an order nisi in favour of one of the judgment creditors, directing two banks to release more than ₦82 million in connection with the judgment debt.
An order nisi is a provisional court order that may become final after the affected parties have had an opportunity to respond and the court has considered their positions.
The development represents a significant step in the enforcement process, with other judgment creditors expected to pursue their claims in sequence as the proceedings continue.
The case stems from the former local government political office holders’ efforts to enforce the financial judgment against the Ogun State Government.
Although the government challenged the original decision through an appeal, the appeal court upheld the lower court’s judgment, leaving the state with an outstanding financial obligation.
The judgment creditors – former local government appointees – are now seeking to recover the principal sum, together with the interest stipulated by the court.
The outcome of the ongoing garnishee proceedings will determine the next steps in the recovery process involving the affected accounts and financial institutions
Romeo Ese and Oladimeji Olowokere are represented the judgment creditors, while lawyers from the Ogun State Ministry of Justice represented the state government and the affected local governments.
