Wednesday, July 22, 2026

N3.4 Billion Debt: Appeal Court refers Makinde, ex-council officials to dispute resolution centre

The governor is appealing a judgment that his administration pays the outstanding salaries and allowances of sacked Oyo council officials.

Oyo State governor, Seyi Makinde (Photo Credit: Twitter)
Oyo State governor, Seyi Makinde (Photo Credit: Twitter)

The Abuja Division of the Court of Appeal has referred Governor Seyi Makinde of Oyo and the embattled former local government chairmen and councillors in the state to the court’s Alternative Dispute Resolution (ADR) centre over settlement of the outstanding N3.4 billion debt.

Justice Elfreda Williams-Daudu gave the order after counsel for the state government, Ayodele Akintunde, and that of the ex-LG officials, Musibau Adetunbi, took their house-cleaning motions.

The development occurred during the hearing of the notice of motion for stay of execution filed by Mr Makinde and six others against the April 27 order absolute of Justice A. O. Ebong of an FCT High Court, Bwari, in furtherance of a Supreme Court judgment given on May 7, 2021, ordering the governor to pay the outstanding salaries and allowances of the sacked council officials.

Mr Akintunde, who informed the three-member panel about a motion for a stay of execution filed, said the matter was about payment of judgment debt.

He told the panel led by Justice Williams-Daudu that the state government was not disputing the payment of the money but that his clients were asking for more favourable payment terms.

The senior lawyer argued that the Oyo State government would not be able to pay the judgment debt in the way and manner ordered by the lower court, considering its monthly allocation from the Federation Account Allocation Committee (FAAC) for both the state and local governments, its contractual obligations, payment of wages and salaries, among others.

But Mr Adetunbi disagreed, insisting that the state government can pay the money as set out in the judgment.

He said there was no dispute about whether or not the Oyo State government could immediately pay the N1.3 billion as ordered by Justice Ebong because the bank had written to confirm that they had monies belonging to the state government in their coffers.

The panel, however, agreed that the money cannot be paid now since there is a pending appeal before it.

Ms Williams-Daudu held that after carefully considering the case, it was agreed that the matter should be sent to the Court of Appeal ADR Centre for the issue to be possibly resolved between the parties.

According to her, the process will be swift ‘because it is faster and devoid of undue rigidity as it is with the normal court process.”

She then asked the lawyers to ensure that the parties with the authority to make decisions participate in the mediation process at the ADR centre, as mediation is party-driven, and they must ensure that they both work out a way to ensure the payment of the judgment sum.

Ms Williams-Daudu adjourned the matter until July 6 for the report on a possible settlement between both parties.

(NAN)

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Kudirat Kekere-Ekun

NationWide

CJN seeks strong legal protection for maritime sector

Mrs Kekere-Ekun described maritime law as one of the principal pillars supporting global commerce.

Alcoholic beverages in sachet

NationWide

NAFDAC begins nationwide mop-up of banned sachet alcohol

The agency stated that the nationwide exercise underscored its commitment to protecting public health. 

Kano State House of Assembly

States

Kano assembly adopts bill to establish state electricity agency

The speaker said the bill would now be transmitted to the executive arm for assent.

Moses Orshio Adasu University, Makurdi (MOAUM)

States

Benue varsity ASUU suspends seven-week strike

ASUU-MOAUM commenced an indefinite strike on June 1 over unresolved welfare and governance issues. 

Olushola Yusuf

Anti-Corruption

Nigerian pharmacist Olushola Yusuf convicted of drug trafficking, flooding Florida community with 335,000 oxycodone pills

Ms Yusuf charged “extraordinary cash prices, served drug dealers and customers who travelled long distances, and put profit ahead of patients”.

three suspected cultists

Heading 2

Police nab three suspected cultists in Lagos

The command’s spokesperson said the suspects were arrested following credible information from members of the public.