The Federal High Court, Abuja, has discharged First Bank of Nigeria Limited from garnishee proceedings in Suit No. FHC/ABJ/CS/2428/2025 between NIMEX Petrochemicals Ltd and another party v. Conoil Plc. The dispute involved a substantial claim of $8,488,752.88*.
Delivering judgment, Justice M. Umar upheld the submissions of Michael J. Numa, SAN, and counsel for First Bank, reaffirming the principle that garnishee proceedings can only attach funds standing to the credit of a judgment debtor, not debit balances or overdraft facilities.
NIMEX Petrochemicals Ltd sued Conoil Plc and sought to enforce judgment by attaching funds in First Bank and four other commercial banks.
First Bank filed an affidavit to show cause, arguing that Conoil was heavily indebted to the bank under several loan and credit facilities, revalidated by an offer letter dated 2 December 2025.
The bank asserted its contractual right to consolidate Conoil’s accounts and exercise a right of set‑off, meaning any credit balances were insufficient to offset the debtor’s outstanding indebtedness.
Justice Umar agreed with First Bank’s position and held that overdraft facilities represent debit positions and cannot be treated as funds available to the debtor. Garnishee proceedings are strictly confined to monies in credit in favour of the judgment debtor. Debit balances or facilities reflecting indebtedness to the bank fall outside the scope of garnishee attachment.
Accordingly, First Bank, along with the 4th and 5th garnishees, was discharged from the proceedings. The matter was adjourned to 11 June 2026 for further hearing.
... Federal High Court Discharges First Bank from $8.4m Garnishee Proceedings Against Conoil ... Naijaonpoint.