A former member of the House of Representatives, Hon. Aliyu Ibrahim Gebi, has been dragged before the Supreme Court over controversies surrounding the liquidation of a N60 million debt incurred to finance his 2011 campaign project.
The accumulated debt accrued from a principal N50 million and an agreed interest of N10 million, bringing the total debt to a N60 million loan from his friend, Mr. Chinedu Iloabachie.
Gebi, who was the chairman of the House of Representatives Committee on Internal Security between 2011 and 2015, represented Bauchi Federal Constituency in the 7th Assembly on the platform of the defunct Congress for Progressive Change (CPC). He had refused to repay the loan until Iloabachie approached a High Court of the Federal Capital Territory in 2012.
Justice Sunday Aladetoyinbo, in a consent judgment entered May 16, 2013, ordered Gebi to pay Iloabachie the sum of N60 million with immediate effect. Aladetoyinbo also ordered Gebi to pay a 10 percent annual interest on the principal sum with effect from 2013 until the whole debt is liquidated.
In furtherance of the consent judgment, Iloabachie initiated a criminal action against the former lawmaker for refusing to liquidate the judgment debt. He also made an application to the Chief Judge of the FCT High Court, seeking further enforcement of the judgment debt.
Meanwhile, Gebi had claimed that the sum of N42.1 million had been liquidated through some direct payments and seizures of his properties. He added that with the intervention of the police, an agreement was reached with Iloabachie to accept the sum of N17.9 million as full and final payment. Iloabachie, however, denied entering into such an agreement, either oral or written, thereby insisting on the full payment of N60 million, including the 10 percent accruals from the year 2013.
Gebi
To this end, in January 2020, Gebi filed an action before Justice Peter Kekemeke of the High Court of the FCT, seeking the court to bar Iloabachie or his representatives from harassing, intimidating, or instituting any action whatsoever against him. Gebi also urged the court to discharge him of any liability or judgment debt whatsoever. At the same time, Gebi urged the High Court to order Iloabachie to give an account of the judgment sum so far realised in the suit.
The court, however, dismissed the application for lack of merit. Kekemeke, in his ruling on July 16, 2020, said, “The judgment of 16/05/2013 is short and straightforward. N60 million and 10% interest from the date of judgment until it is finally liquidated. The judgment debtor/applicant has not put sufficient materials before me to suggest that he has liquidated the judgment debt. From the affidavit evidence of both parties, it is clear the applicant has not liquidated the judgment sum. There are no receipts of payment or bank transfers or inventory and values of properties or bank statements attached to suggest the liquidation of the judgment sum. The application lacks merit and is accordingly dismissed.”
Dissatisfied with Kekemeke’s decision, Gebi approached the the Abuja division of the Court of Appeal. A panel of the appellate court, comprising Justices Hamma Akawu Barka, Nnamdi Dimgba, and Asmau Ojuolape, in its November 2024 judgment delivered by Barka, resolved all issues in favor of the former lawmaker.
Barka held that the 10 per cent accruals are on the sums due at the period the amount is being calculated and not on the principal sum. He also held that Iloabachie did not deny benefiting from the police intervention and as such cannot deny the agreement. The Court of Appeal agreed that Gebi had fully liquidated the judgment sum.
According to Barka, “All the issues having been resolved in favor of the appellant, the inevitable conclusion is that this appeal is meritorious and it is hereby allowed. The judgment of U.P. Kekemeke J of the FCT High Court delivered on July 16, 2020, is hereby set aside. In its place, judgment is entered for the appellant.”
Following the decision of the Court of Appeal, Iloabachie approached the Supreme Court for final determination.
Counsel to Iloabachie, Olawale Akintoye of Opaola and Akintoye Associates, in a notice of appeal dated December 5 and filed on December 9, 2024, urged the Supreme Court to set aside the judgment of the Court of Appeal.
According to Akintoye, the essence of awarding the 10 per cent interest on the judgment sum was to ensure that the judgment creditor gets good value in terms of the fruits of the said judgment. Akintoye further argued that the judgment of the trial court does not suggest or show that the interest ought to be calculated on the reducing balance method as against charging 10 percent all year round despite the payments effected, as argued by Gebi.
“There is nothing in the judgment of Justice Aladetoyinbo delivered on May 16, 2013, that suggests that the interest ought to be calculated on the reducing balance method, as against charging 10% all year round despite the payments effected, as argued by the respondent,” Akintoye argued.
He, thereby, prayed the Supreme Court to set aside the entire judgment of the Court of Appeal. He also urged the apex court to direct Gebi to immediately pay Iloabachie the outstanding judgment sum, including all accrued court interests as contained in the May 16, 2013, judgment delivered by Justice Aladetoyinbo.
