Conoil Plc and NIMEX Petrochemicals Ltd. are in dispute before the Federal High Court, Abuja, over the latter’s $8,488,752.88 judgment debt claims in pending garnishee proceedings.
Nimex sued Conoil while attaching five commercial banks as garnishee respondents.
Nairametrics reports that garnishee proceedings are an aspect of law whereby a judgment creditor (who has won a monetary judgment) seeks to recover a judgment debt by attaching money belonging to the judgment debtor that is held by banks, thereby involving the banks in the case for the purpose of showing cause, if necessary.
What Nimex and Conoil are saying
According to Nimex’s motion on notice obtained by Nairametrics and filed by Patrick Ikwueto, SAN, a temporary garnishee order (nisi ) was granted, attaching the said funds in the possession of identified banks.
He argued that a previous final judgment was delivered by the Federal High Court in Suit No: FHC/ABJ/L/CS/252/2007 against Conoil, relating to accumulated demurrage allegedly incurred by Conoil from the “various supplies of petroleum products by Nimex through shipment.”
According to the senior lawyer, the money is owed to his clients to the tune of $8.4 million, being the alleged total judgment debt and 10% post-judgment interest from October 28, 2013, up until July 2, 2025.
He explained that while a previous garnishee proceeding by a bank was pending, the Central Bank of Nigeria (CBN), as a result of a garnishee order against Conoil, deducted the sum of N4.3 billion for the purpose of settling the judgment debt.
- “I know that the judgment debt was in dollars and not in naira,” the claimant added.
The claimant further stated that the MD/CEO of Nimex, Azmat Mohammed, in May 2025, confirmed that the sum of N4,347,126,048 was paid to the judgment creditors (Nimex) on July 2, 2025.
He argued, however, that as of July 2, 2025, the NFEM (Nigerian Foreign Exchange Market) rate was $1 to N1,526, and that the sum of N4,347,126,048 was equivalent to $2,848,412.09 using that rate.
He added that, pursuant to a Court of Appeal judgment in 2025, his clients computed the total at $11 million, arguing that $8.4 million remains the outstanding balance.
He urged the court to hold that the $8.4 million judgment debt in the instant suit remains outstanding and has yet to be paid or settled by the identified banks.
However, in its motion on notice seen by Nairametrics, Conoil’s lawyer, Ishaka Dikko, SAN, urged the court to set aside the temporary garnishee order made by Justice Mohammed Umar, attaching the said $8.4 million, on the grounds that it was allegedly “obtained by fraud, misrepresentation, and suppression of facts by Nimex.”
The senior lawyer explained that Nimex had initially commenced garnishee proceedings, which were made final by the court on October 20, 2015, to the tune of $13.7 million, representing the judgment debt.
He added that the sum of N4,347,126,048, representing the naira equivalent of $13,703,728.00, was withdrawn from Conoil’s (the judgment debtor’s) bank account by the Central Bank of Nigeria and subsequently deposited into an interest-yielding account with the Chief Registrar of the court.
- “The judgment creditors have since taken benefit of the sum of N4,347,126,048,” the senior lawyer maintained.
He alleged that the judgment creditors have now calculated another sum on the judgment debt at 10% without a clear breakdown of what constitutes the principal debt and what has accrued as interest.
He accused Nimex of attempting to be “compensated twice over the same subject matter”, having obtained a temporary garnishee order attaching another sum of $8,488,752.88, as the judgment debt.
Nairametrics gathered that the case has been adjourned to June 11, 2026, for hearing.
Backstory
Nairametrics previously reported that the Federal High Court, Abuja, had discharged First Bank of Nigeria Limited from the $8,488,752.88 garnishee proceedings involving NIMEX Petrochemicals Ltd and another party against Conoil Plc.
The enrolled copy of the ruling, delivered by Justice M. Umar on March 31, 2026, was obtained by Nairametrics.
The bank’s case was handled by M.J. Numa, SAN, Isioma Kelubia, Aifuwa Imadegbelo, and Emmanuel C. Sogo.
Nimex had sued Conoil while attaching First Bank and four other commercial banks as garnishee respondents.
The court, agreeing with First Bank, held that an overdraft facility constitutes a debit position and does not amount to funds standing to the credit of a judgment debtor.
Subsequently, Numa’s law firm stated that the court held that such a facility cannot be the subject of garnishee attachment.
As seen by Nairametrics, the judge held that First Bank, as well as the 4th and 5th garnishees, “are hereby discharged.”
What you should know
Garnishee proceedings are a legal mechanism through which parties recover debts.
Banks are often joined as respondents in such proceedings.
However, the outcome depends on the decision of a court of competent jurisdiction.
