Bill to pay judgment debts passes second reading | Headline News


A bill establishing guidelines for paying judgments owed by the federal government and its agencies has passed second reading in the House of Representatives.

Speaker Mariam Onuoha (APC-Imo), who proposed the bill in parliament in Abuja on Thursday, pointed to Nigeria’s growing financial debt due to judgment debt.

In a discussion on the bill's general principles, Onuoha said payments are often administered without consistent guidelines, proper documentation and transparency.

She explained that government agencies typically pay judgment debts on a discretionary basis, without proper consideration of the order of judgment, the public interest, or the need to respect court orders.

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According to her, the absence of a legal framework to govern these obligations has led to negligence and misconduct.

She argued that the actions of public officials, unchecked by clear consequences, resulted in avoidable litigation.

“The Judgment Debt (Payment Guidelines) Bill 2023 is therefore a necessary response to these challenges.

“We are implementing a structured approach to managing the payment of judgment debts by the federal government and its agencies, ensuring accountability, compliance, and financial discipline.”

Onuoha added that the bill would require government agencies to directly pay judgment debts incurred, promoting fiscal responsibility and discouraging reckless behavior.

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He added that requiring judgment debt to be included in the annual budget with parliamentary oversight would also promote transparency and accountability.

However, the bill received support from MPs and was subsequently passed by the House of Commons, giving it a second reading.

Source: guardian.ng

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