Paris Club Refund: Court Knocks 36 States Over $418m Debt, Dismisses Suit Against FG

A federal high court sitting in Abuja, on Friday dismissed an application filed by the Attorneys General of the 36 states of the federation which sought an order permanently restraining the federal government from deducting monies due to the states with a view to settling $418 million debts relating to the Paris Club refund.

The court, presided by Justice Inyang Ekwo, had on November 5, 2021 granted an interim injunction against President Muhammadu Buhari, Central Bank of Nigeria, Debt Management Office, Attorney General of the Federation and the Accountant General of the Federation over the matter.

Other defendants included several banks, individuals and companies.

The defendants in the suit had contended that the AGs of the respective states have no locus standi (the right or capacity to bring an action or to appear in a court) to institute the court action.

They had further argued that the Nigerian Governors Forum and the Association of Local Governments of Nigeria had consented to pay the debt in view of the judgment of court.

Reading the judgment on Friday, Justice Ekwo agreed that the AGs of the states could not sufficiently prove that the Nigerian governors did not consent to pay the debts.

He said that from records of court, the Nigerian Governors indeed agreed for monies meant for their states to be deducted to settle the debts.

“I find that the plaintiffs have not locus standi to bring this action and I so hold,” he said.

Regarding the competence of the suit by the plaintiffs, Ekwo held that the governors were parties to an earlier suit where the said judgment (debt) was entered against them.

He said what the plaintiffs needed to do was not “to institute this case in the manner they have done” but to sue the governors as well as file a suit praying for the judgment debt to be set aside.

“It is on that basis that this court cannot review judgment given by a coordinate or higher court.

“I dismiss the case for being an abuse of court process,” he said.

The judge also noted that the constitution does not prohibit deduction based on contracts entered into by the NGF on behalf of their states, rather, adding that it simply bars “arbitrary deduction.”

Ekwo held that the case by the plaintiffs were lacking in merit.