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Thu, May

Court Freeze Oyo State Gov't Accounts Over N3.5bn Debt

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The High Court of the Federal Capital Territory (FCT) in Abuja has issued an order to freeze the accounts of the Oyo state government in ten commercial banks across the country. The banks include Zenith Bank, United Bank of Africa (UBA), Wema Bank, First Bank of Nigeria, Ecobank, Guaranty Trust Bank, Access Bank, Polaris Bank, Jaiz Bank, and Union Bank. The order was issued by Justice A. O. Ebong in a ruling on a proceeding initiated by ex-council chiefs in Oyo state, sacked on May 29, 2019, by Governor Seyi Makinde, and who in 2021 got a N4,874,889,425.60 judgment against Makinde and other officials/agencies of the state.

The garnishee proceeding is intended by the ex-council chiefs, led by Bashorun Majeed Ajuwon, to recover the balance of N3,424,889,425.60 (N3.5b) which is outstanding from the actual judgment sum, from which Makinde paid only N1.5B in 2022.

What was outstanding in respect of the Supreme Court judgment was N3,374,889,425.60, but the Court of Appeal in Abuja added N50million, which it awarded as cost against Makinde and others in a judgment on December 8, dismissing their appeal.

Justice Ebong, in the ruling on a motion marked: BW/M/85/2023, ordered the garnishees (the banks) to “file affidavits and attend this court on the next adjourned date to show cause why the garnishee orders nisi hereby granted should not be made absolute.” The judge awarded N300,000.00 as cost against the judgment debtors; ordered that a copy of the order be served on Makinde and others and adjourned till January 5 next year for a hearing.

The case is scheduled for further hearing on January 5, 2024. This legal action follows the Supreme Court’s ruling on May 7, 2021, which declared the dismissal of elected local government chairmen and councilors in Oyo State as unlawful.

The court had mandated the affected states, including Oyo and Katsina, to pay the salaries and allowances of the affected ex-council chiefs. While Katsina State had complied with the judgment, Oyo State has yet to fulfill this obligation.

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