The Federal High Court in Abuja has discharged First Bank of Nigeria Limited from a $8,488,752.88 garnishee proceedings dispute involving NIMEX Petrochemicals Ltd and another party against Conoil Plc.
The ruling, delivered by Justice M. Umar on March 31, 2026, obtained by Alo360 on Wednesday and confirmed by the bank’s legal team, led by Michael J. Numa, SAN.
For context, Alo360 explains that garnishee proceedings allow a judgment creditor (someone owed money after winning a court case). To recover the debt by attaching funds belonging to the judgment debtor that held by a bank. This process involves the bank to determine whether it holds such funds.
First Bank’s legal team for the case included M.J. Numa, SAN, Isioma Kelubia, Aifuwa Imadegbelo, and Emmanuel C. Sogo. NIMEX had initiated the case against Conoil, naming First Bank and four other commercial banks as garnishee respondents.
Key Court Ruling
According to M.J. Numa & Partners LLP, the court upheld First Bank’s argument and reaffirmed a key legal principle in garnishee proceedings.
The court ruled that an overdraft facility represents a debit position. Not funds available to the credit of a judgment debtor. Therefore, such a facility cannot be subject to garnishee attachment.
Quoting the ruling, the law firm stated:
“The court further reiterated that garnishee proceedings are strictly confined to monies in the custody of a garnishee. Which are in credit in favour of the judgment debtor, and do not extend to debit balances or facilities that merely reflect an indebtedness to the bank.”
As seen by Alo360, the judge discharged First Bank, along with the 4th and 5th garnishees, from the case. The matter adjourned to June 11, 2026, for further hearing.
First Bank’s Reaction
First Bank’s legal team welcomed the ruling, stating that it reinforces the legal boundaries of garnishee liability and provides much-needed clarity for financial institutions in Nigeria.
The law firm described the decision as a significant contribution to the legal framework governing garnishee proceedings. It also highlighted the importance of understanding banker–customer relationships within the context of debt enforcement.
The garnishee proceedings in Suit No. FHC/ABJ/CS/2428/2025 arose from a substantial claim of $8,488,752.88. The case carries significant legal and commercial implications for banking operations and the evolving jurisprudence on garnishee proceedings in Nigeria.
Background
Before the court’s decision, First Bank’s legal team had filed an affidavit explaining why the bank should be discharged from the case.
