The Economic and Financial Crimes Commission (EFCC) is a law enforcement agency in Nigeria that is responsible for investigating and prosecuting financial crimes. Recovery of debt is not part of its mandate. Established in 2003, the EFCC has played a crucial role in the fight against corruption and economic crime in the country.
Are you struggling to recover a debt in Nigeria? It is a frustrating and often overwhelming process, but options are available. One route that some people consider is involving the Economic and Financial Crimes Commission (EFCC), but is this the best solution? In this post, we will explore misconceptions and the potential consequences of involving the EFCC in debt recovery cases. Do not miss out on this crucial information – read on to learn more!
One of the main functions of the EFCC is to investigate and prosecute cases of corruption, money laundering, and other financial crimes. This includes cases involving embezzlement, fraud, and the illicit enrichment of public officials.
However, some people often erroneously regard debt recovery as one of the core mandates of the EFCC.
Furthermore, courts have consistently frowned at the act of using EFCC and, indeed, other law enforcement agencies like the police force as money recovery agents. The Supreme Court has reiterated this fact in the case of EFCC vs Diamond Bank Plc. in the instant case, the bank wrote a petition to the EFCC against her customers over a pure contractual transaction and debt recovery which did not involve any fraud or fraudulent practice, or criminality. The Supreme Court frowned at such practice and held that the Economic and Financial Crimes Commission is not a debt recovery agency and should refrain from being used as such. (2018) 8 NWLR (Pt. 1620) 61Court: S.C.
From the above decision of the Supreme Court, it is glaring that law enforcement agencies like the police and EFCC cannot be used to settle civil scores like debt recovery.
Wisdom demands that one desists from engaging law enforcement agencies in civil matters. Any individual who uses law enforcement agencies like police and EFCC could be liable in damages in action for false imprisonment or infringement of fundamental rights.
Nevertheless, several options are available to creditors looking to recover a debt under Nigerian law. Some of the most common options include:
1. Negotiation: In some cases, creditors may be able to recover their debt through negotiation with the debtor. This may involve an agreement on a payment plan or a settlement amount.
2. Mediation: If negotiation is unsuccessful, creditors may consider mediation to resolve the dispute. Mediation is a form of alternative dispute resolution that involves using a neutral third party to facilitate discussions between the creditor and debtor and help them reach a mutually acceptable solution.
3. Court action: If all other options have been exhausted, creditors may consider pursuing court action to recover their debt. This may involve filing a lawsuit against the debtor and obtaining a judgment in their favour. Once a judgment has been received, creditors may be able to enforce it by garnishing wages, seizing assets, or placing a lien on the debtor’s property.
In summary, it is legally unacceptable to engage EFCC and other law enforcement agencies in debt recovery. Any creditor who does so runs the risk of being liable in action for infringement of fundamental rights or false imprisonment in the event the debtor decides to seek redress.
I hope this finds you well.
Disclaimer!
Information contained in this post is the writer’s opinion and not legal advice.
EBELECHUKWU AROH-NWOKA ESQ.