N3.1 Billion Debt: Court Freezes Zamfara’s Account In 21 Banks

N3.1 Billion Debt: Court Freezes Zamfara’s Account In 21 Banks

For  refusing to pay a judgement sum of N3.1 billion,  a Federal High Court in Lagos yesterday granted an order attaching funds standing to the credit of Zamfara State in 21 commercial banks in the country.

Justice Okon Abang ordered all the banks involved to disclose the amount of money which Zamfara State has in their keepings.

The court ordered the 21 banks to appear before him on November 6, 2015 to give reasons, (if any) why such funds should not be withdrawn to satisfy a debt of N3.1bn with interest, which Zamfara State owed Ecobank Nigeria Limited.

Abang had on September 30, 2015 entered judgment in favour of Ecobank in a N3.1bn debt recovery suit it filed against Zamfara State Government and six others.

The judge had granted the bank’s claim of N3.1bn with 30 per cent interest from March 1, 2013 till judgment day and 10 per cent thereafter until the final liquidation of the debt.
In the said judgment, Abang said the papers before him showed that Zanfara State obtained a credit facility in sum of N1.5bn in 2009 from the defunct Ocean Bank Plc, which was later acquired by Ecobank.

The judge said Zamfara State neither denied being indebted to the bank nor proved that it had liquidated the loan, which it obtained to execute a water project.

He then ordered the Accountant General of the Federation to ensure that the judgment sum with interest was deducted from funds accruable to Zamfara State in the Federation Account and to pay it to Ecobank until the debt was fully liquidated.

Dissatisfied,  Zamfara State and the CBN appealed  and urged the to stay execution of the judgment pending the determination of the appeals.

But,  in a ruling delivered yesterday, Justice Abang dismissed both applications and asked Ecobank to proceed with the process of recovering the debt from Zamfara State.

Ruling on the CBN application, the judge said, “I have been wondering how the order will affect the CBN so that the CBN will now go and apply for stay of execution of not just the order made against it but the entire judgment.

“It is my humble view that CBN will not lose anything if the order is complied with.

“The Central Bank should assist Ecobank in its time of need because if Ecobank’s liquidity is affected on account of non-payment of loan by Zamfara State, it is the same CBN that will withdraw Ecobank’s licence; and it is the innocent depositors that will be affected if the licence of Ecobank is withdrawn by the CBN.

“The Central Bank should assist Ecobank to recover the loan from Zamfara State government, whether or not it was party to the loan agreement, because the amount that will go to Zamfara State is domiciled with the CBN.”