Efficacy of Garnishee Proceedings Against Closed Banks/Nigeria Deposit Insurance Corporation (NDIC)

Abstract

This paper examines the concept of garnishee proceedings as it relates to closed banks and Nigeria Deposit Insurance Corporation (NDIC). The paper also posits that a garnishee proceeding is not an efficacious way of enforcing money judgment against closed banks and NDIC. This stems from the fact that the NDIC as the statutory liquidator of closed banks is only obliged to pay a maximum of N200,000.00 to any person who has an account with any closed bank. The paper also highlights the problem with the requirement of the Attorney General of the Federation (AGF)'s consent before attaching the money in custody of the NDIC. Effort was also made to consider the combined effect of the provisions of Sections 414 and 417 of Companies and Allied Matters Act (CAMA), while maintaining the position that the statutory provisions pose a legal challenge to the commencement of garnishee proceedings against a closed bank. The paper concludes by considering the defences available to NDIC in a garnishee proceeding and other options available to a judgment creditor.