Garnishee proceedings are a critical tool for enforcing monetary judgments in Nigeria. However, t... more Garnishee proceedings are a critical tool for enforcing monetary judgments in Nigeria. However, their misuse has increasingly led to systemic inefficiencies and undue hardship, particularly for banks wrongly joined in proceedings without evidence that they hold the debtor's funds. Creditors frequently list multiple banks arbitrarily, leading to wasted judicial time, inflated legal costs, and disruption of banking operations. This practice contradicts settled legal principles and has raised concerns among courts and stakeholders. With the nationwide adoption of the Bank Verification Number (BVN) and the operational capabilities of the Nigeria Inter-Bank Settlement System (NIBSS), it is now possible to verify the existence of a judgment debtor's account in a specific bank before initiating garnishee proceedings. Yet, this technology remains underutilized in the legal process. This article examines the legal framework governing garnishee proceedings in Nigeria, the burdens placed on financial institutions under current practices, and relevant case law emphasizing that garnishees must not be joined without a factual basis. It further explores the potential of BVN-linked account tracing as a prelitigation verification tool. By assessing the roles of the courts, Central Bank of Nigeria (CBN), and NIBSS, the article proposes a reform framework that balances judgment enforcement with financial system integrity.
Debt recovery remains a significant challenge in Nigeria, often blurring the lines between civil ... more Debt recovery remains a significant challenge in Nigeria, often blurring the lines between civil liability and criminal enforcement. While debt obligations are primarily contractual and fall within the realm of civil law, creditors frequently resort to law enforcement agencies such as the Nigerian Police and the Economic and Financial Crimes Commission (EFCC) to pressure or detain debtors. This practice raises serious legal and ethical concerns, as it often results in the wrongful criminalization of debtors and the misuse of state power. This article examines the legal framework governing debt recovery in Nigeria, distinguishing between civil liability for unpaid debts and the limited circumstances under which debtrelated matters may attract criminal sanctions. It analyses judicial decisions that reaffirm the civil nature of debt disputes and condemn the unlawful involvement of law enforcement agencies in private debt recovery. Furthermore, the article explores the systemic inefficiencies in Nigeria's civil justice system that push creditors toward extrajudicial measures. The study concludes by advocating for legal reforms to streamline civil debt recovery processes, enforce judicial pronouncements against the misuse of law enforcement, and promote public awareness of lawful debt enforcement mechanisms. Strengthening the rule of law in debt recovery will not only protect debtors' rights but also enhance confidence in Nigeria's financial and legal systems.
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Papers by Samuel Udoku