The Court of Appeal in Abuja has set aside a Federal High Court judgment that ordered the attachment of a purported ₦100.1 million debt against the Central Bank of Nigeria (CBN) in a long-running legal dispute involving the Imo State Government.
Delivering the unanimous judgment, Justice Okon Abang held that the lower court acted on speculation rather than credible and verifiable evidence when it made the garnishee order absolute against the apex bank.
The appellate court ruled that the CBN neither maintained an account for the Imo State Government nor owed the state any attachable debt capable of sustaining garnishee proceedings.
The case stemmed from efforts by a judgment creditor, through his counsel, to enforce a ₦100,178,210 judgment earlier obtained against the Imo State Government. The Federal High Court had ruled that the state’s anticipated allocation from the Federation Account Allocation Committee (FAAC), domiciled with the CBN, could be attached to satisfy the judgment debt.
However, the Court of Appeal disagreed, holding that the evidence presented before the trial court was insufficient and unreliable.
Justice Abang ruled that anticipated FAAC allocations do not constitute an existing debt that can be attached through garnishee proceedings, stressing that only a legally enforceable and ascertainable debt is eligible for such action.
The court further faulted the trial judge for failing to properly resolve disputed facts before issuing the final garnishee order, describing the decision as speculative and lacking legal foundation.
Consequently, the Court of Appeal allowed the CBN’s appeal, nullified the garnishee order issued by the Federal High Court, and awarded ₦1 million in costs against the judgment creditor.
The ruling is expected to serve as a significant judicial precedent, reaffirming that anticipated statutory allocations cannot be treated as attachable debts in garnishee proceedings unless they have become due and legally enforceable.
