N3.5bn debt: Court freezes Oyo govt’s accounts in 10 banks

Oyo State Governor, Seyi Makinde

The accounts of the Oyo State Government in 10 commercial banks in the country have been frozen.

The banks in which the state government’s accounts were blocked are 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.

Justice A. O. Ebong of High Court of the Federal Capital Territory (FCT), Abuja issued an order attaching the accounts on Monday, December 18, 2023.

The order was issued in a ruling on a garnishee proceeding initiated by ex-council chiefs in Oyo State, who were sacked on May 29, 2019 by Governor Seyi Makinde.

The sacked local government chairmen and councillors had, in 2021, got a N4,874,889,425.60 judgement against Makinde and other officials/agencies of the state.

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The other officials/agencies listed with Makinde as judgement debtors, by virtue of the May 7, 2021 judgement of the Supreme Court, are the Attorney-General, Commissioner for Local Government and Chieftaincy Affairs, Accountant-General of Oyo State, Speaker of the House of Assembly, the House of Assembly and the Oyo State Independent Electoral Commission (OYSIEC).

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

What was outstanding in respect of the Supreme Court judgement was N3,374,889,425.60, but the Court of Appeal in Abuja added N50 million, which it awarded as cost against Makinde and others in a judgement on December 8, dismissing their appeal.

Justice Ebong delivered the ruling on December 15 on a motion marked: BW/M/85/2023 but its certified true copy (CTC) was gotten on Monday.

He ordered the garnishees (the banks) to file affidavits and attend the 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 as cost against the judgement debtors; ordered that a copy of the order be served on Makinde and others and adjourned till January 5, 2024 for hearing.

The Star