An Ecobank branch

AKIN KUPONIYI

Justice Okon Abang  of the  Federal High Court, in Lagos south west Nigeria  today ordered the Zamfara State Government to pay a judgment sum of N3.15 billion to Ecobank Nigeria Limited, being the outstanding indebtedness to the bank.‬

‪Justice Abang gave the order while delivering judgment in a suit filed by Ecobank Nigeria Limited, against the Zamfara state government.‬

Joined as co defendants in the suit are; Zamfara state’s Attorney-General, Zamfara State Ministry of Finance; Accountant-General of the Federation; Attorney-General of the Federation and Central Bank of Nigeria. ‬

Ecobank Plc in a suit listed on the ‘undefended’ list with suit number  FHC/L/CS/872/2015, had dragged the Zamfara state government before the Court over a loan of N1.5 billion obtained from Oceanic International Bank in the month of May, 2009.

The Bank in an affidavit in support of the suit deposed to by Oluwafunmilola Salami, a lawyer in the law  firm of Kunle Ogunba and Associates, averred that Zamfara state government through the Ministry of Finance, had in the month of May, 2009,  received an extended facility of N1.5 billion from the Oceanic International Bank Limited, now consolidated with Ecobank Nigeria Limited.‬

The deponent averred that the major security for the disbursement of the said loan facility was a conditional Irrevocable Standing Payment Order, ISPO, from the State government Valued Added Tax,(VAT), domiciled with the First Bank Plc.  She added that the facility however suffered a set back when First Bank Plc stopped warehousing the State’s Federation Account Allocation Committee, (FACC),  consequently declined further remittance  for the payment of the indebtedness that arose from the facility.‬

The deponent also averred that due to the above  scenario  agreement was reached to restructure the debt in November 2010, after which the Zamfara state Government honoured rentals for few months.

She added that the Zamfara state Government till date failed  to pay the rentals despite the fact that such have fallen due.‬
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Justice Abang, while granting all the plaintiff’s claims, only award the sum of N50,000, as the cost for prosecuting the suit against the first to third defendants. ‬