The Federal Government has raised concerns over the alarming rise in judgment debts, with cases against Ministries, Departments, and Agencies (MDAs) more than tripling since 2015.
The Central Bank of Nigeria (CBN) and the Federal Ministry of Justice have called for urgent measures to curb the trend, which they say threatens national resources and hampers development.
Speaking at the 2024 Roundtable with Legal Advisers of Federal MDAs in Abuja on Thursday, the CBN Deputy Governor for Corporate Services, Bala Bello, highlighted the surge in garnishee orders as a pressing issue.
Represented by the CBN’s Director of Legal Services, Kofo Salami-Alada, Bello attributed the rise to the Treasury Single Account (TSA) policy introduced in 2015 and the apathy of MDAs in defending court cases effectively.
“Before 2015, the number of cases stood at 441. This has since increased exponentially to 1,629 in volume and financial value,” Bello revealed. He stressed the need for coordinated case management strategies across MDAs to mitigate the situation.
Salami-Alada pointed out that poor legal defence and non-compliance with court judgments have contributed to the growing number of garnishee orders.
He warned that the trend could drain federal resources and impede the activities of MDAs.
“Non-compliance with court judgements without seeking a stay of execution or filing appeals exacerbates the situation,” he said.
Salami-Alada urged MDAs to ensure immediate action when judgments are issued, including filing necessary legal processes to prevent enforcement actions.
He also proposed sanctions for legal officers who fail to defend cases diligently and incentives for swift case resolution.
“We encourage participants to share their constraints and collaboratively provide practical measures to tackle these issues,” he added.
The Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, lauded the collaborative efforts between the CBN and the Ministry of Justice to address the growing judgment debts.
Represented by the Solicitor General of the Federation, Beatrice Jedy-Agba, Fagbemi stressed the importance of diligent legal defence to protect government assets and public funds.
“The government will no longer tolerate liabilities arising from compromises, lack of diligence, or incompetence by attorneys acting on its behalf,” he said.
Fagbemi announced plans to introduce an appeals policy to reverse the poor appeal culture in MDAs, streamlining the management of interlocutory and substantive appeals.
He emphasized that garnishee proceedings, while legitimate, could disrupt public services and projects if not handled effectively.
Meanwhile, Agomuo Chimaobi, Director of Legal Services at the Centre for Civic Education, urged federal agencies to pay outstanding judgment debts.
Speaking on behalf of lawyers who had won cases against government entities, Chimaobi said the delays in payment have left many financially strained.
“These debts, compiled by the Attorney General’s office, stem from rulings across the High Courts, Appeal Courts, and the Supreme Court,” he explained.
A bill seeking to establish guidelines for paying judgment debts by the Federal Government and its agencies is currently under consideration in the House of Representatives.
Sponsored by Miriam Onuoha, the bill has passed its second reading and aims to provide a legal framework for addressing these financial obligations.
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