Oil spills: Court orders CBN to release 82 billion judgment debt to Akwa Ibom communities

An absolute garnishee order has been granted to the Central Bank of Nigeria by Justice Taiwo Taiwo of the Federal High Court in Abuja, ordering the release of N81.9 billion in the custody of the National Petroleum Corporation (NNPC) and its joint venture partner, Mobil Producing Nigeria Unlimited , to oil producing communities in the Ibeno Local Government Area of Akwa Ibom state.

Ibeno communities headed by Obong Effiong Archianga and 9 others filed a lawsuit through their attorneys, Chief Lucius Nwosu, SAN  NNPC, Mobil Producing Nigeria Unlimited and ExxonMobil Corporation. They claimed damages of N100 billion as a result of the defendants’ oil spillage during exploration.

The oil communities had gone to court to seek redress over oil spillage in the area, which they claimed had caused environmental degradation in their communities.

Consequently, in a judgement on June 21, 2021, Justice Taiwo made an order, awarding the cost of N81.9 billion to the plaintiffs, who are now judgement creditors. The court had ordered that the money must be paid within 14 days after which 8 percent interest will be accruable on the principal sum annually.

On December 15, 2021, in a garnishee nisi proceeding, the apex bank had insisted that it had to get the consent of the Attorney General of the Federation before enforcing the garnishee judgement.

However, in a judgement on Monday, Justice Taiwo dismissed the claim of CBN and ordered it to release funds belonging to NNPC and Mobil to the tune of N82bn to the judgement creditor.

The court said it was wrong for the apex bank to say it has to get consent from AGF before attaching the judgment debt, insisting the apex bank is not a public officer.

“The January 6, 2022 application for an order nisi is made absolute against the apex bank, Justice Taiwo ordered.

Earlier, the court had dismissed an application challenging the service of a garnishee order nisi on the judgement debtor. Justice Taiwo noted that the coming into force of the Petroleum Industry Act had altered the name of the judgement debtor.

Read more: Ogoni Oil Spill : Ten Years After Judgment, Shell Agrees To Pay N45.9bn

Nonetheless, according to the court, NNPC Ltd inherited NNPC’s assets and liabilities, as well as the CEO, Directors and employees.

“It follows that the suit identity of the judgement debtor has been known, and the misnomer will be corrected, since it’s a mistake of a name.

“The judgment debtor is a juristic person, and the applicant has not suffered any injustice because of the mistake in the name of the applicant.”

“Stance of applicant’s counsel is colourful and technical. The Court has power, suo moto to grant amendment of the name if mistakenly written.

“When a misnomer occurs, it does not vitiate the subject matter of the case. The object of the court is to make findings and dispense justice and not to punish a litigant for a misnomer.

It was added that the judgement creditor can file claims “jointly and severally” against the judgment debtor.

“I find merit in the address of the judgment creditor, particularly paragraphs 4.14 to 4.18 of his address.

“The application of the judgement debtor dated 24 December, 2021 is hereby refused” the court held.