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CENTRAL BANK OF NIGERIA V. ASSET MANAGEMENT CORPORATION OF N (2017)

case summary

Court of Appeal (Yola Division)

Before Their Lordships:

  • Justice Oyebisi Folayemi Omoleye
  • Justice James Shehu Abiriyi
  • Justice Saidu Tanko Husaini

Parties:

Appellant:

  • Central Bank of Nigeria

Respondents:

  • Asset Management Corporation of Nigeria
  • Access Bank PLC
  • Adamawa State Government
  • Attorney General of Adamawa State
  • Zenith International Bank PLC
  • First Bank of Nigeria Limited
  • Guarantee Trust Bank PLC
  • Keystone Bank Limited
  • Diamond Bank PLC
  • FCMB Limited
Suit number: CA/YL/132/2015

Background

This case arises from garnishee proceedings initiated by the 1st and 2nd respondents against the appellant, the Central Bank of Nigeria (CBN), following a judgment in the Federal High Court which ordered certain defendants to pay a significant sum to the respondents.

Issues

The primary legal issues presented in this appeal are:

  1. Whether the trial court had the jurisdiction to entertain the garnishee proceedings against the CBN without the Attorney-General’s consent as required by section 84 of the Sheriffs and Civil Process Act.
  2. Whether the trial court erred in making the garnishee order absolute despite an affidavit showing cause filed by the appellant.

Ratio Decidendi

The court noted that:

  1. Section 84 mandates that the Attorney-General's consent be obtained prior to garnishee proceedings against a public officer.
  2. The definition of 'public officer' encompasses both natural and artificial persons, thus the CBN qualifies as a public officer in this context.
  3. The failure to obtain said consent renders garnishee proceedings null and void.

Court Findings

The Court found that the trial judge acted without jurisdiction due to the absence of the required Attorney-General's consent, which constituted a condition precedent to the proceedings. The CBN, being a public institution, was entitled to this protection under the law. Additionally, the court recognized the flawed process whereby the trial court ignored the appellant's submitted affidavit meant to show cause against the garnishee order.

Conclusion

The decision of the trial court was set aside due to the procedural flaws identified. The Court ruled that it would remand the matter to the Federal High Court for a new hearing, emphasizing the necessity for strict adherence to procedural rules.

Significance

This ruling is significant for clarifying the process of garnishee proceedings against public officers in Nigeria. It underscores the importance of obtaining the Attorney-General’s consent, reinforcing the established legal framework governing such actions. The outcome emphasizes the need for legal compliance to ensure fair judicial processes and protect public institutions from unwarranted garnishee actions.

Counsel:

  • Thomas Egewuje Esq.
  • Bola Olotu Esq.
  • U. J. Konleganyiga Esq.
  • T. L. Nzadon Esq.
  • Miss Ruth Gbaa Esq.