Paris Club Fund: Court Dismisses Suit Challenging $418m Deduction 

Salihu Ali, Abuja

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A Federal High Court in Abuja Nigeria, has dismissed a suit by Attorneys General of the 36 States against the Nigerian Government’s move to deduct $418m from States’ funds to settle debts owed consultants engaged by the States and Local Governments in relation to the Paris Club refunds.

Justice Inyang Ekwo made the order while delivering judgment on Friday.

The complainants are seeking an order to restrain President Muhammadu Buhari and others from effecting the planned deduction from States’ funds to settle the debt owed consultants.

Defendants in the suit are the Nigeria’s Attorney General, Finance Minister, Accountant General of the Federation and all banks in Nigera among others.

However, in his judgment on Friday, 25-03-2022, Justice Ekwo held that the complainants has not shown enough evidence to accord them the right to be a party in the legal case (locus standi) to institute the action.

The Judge said, “there was no express evidence to show that the State Governors consented to filing of the suit.

“The office of the Attorney General of a State was created under Section 195 of the 1999 Constitution, as amended.

“The AG of a State is appointed by a Governor, which makes the AG an appointee, who is under the control of a governor.”

“From the court’s findings, the plaintiff has no locus standi to file the suit, therefore there was no cause of action.  

The court noted that the contention of the Plaintiff that it was not party to the judgment debt did not hold waters because the Nigerian Governors Forum and the Association of Local Governments were parties in the suit.” The Judge added.

The court noted that the plaintiff had acknowledged the existence of judgment debt, insisting that filing of the court was a ploy to challenge the judgement debt.

“The action of the plaintiff amounts to an abuse of court process,” the judge said.

Justice Ekwo therefore, dismissed the suit for lacking merit.

Counsel to the Nigerian government Mr. Whole Oke SAN described the judgment as right in the point of law while his counterpart of the plaintiff Mr. Jibril Okutepe SAN expressed shock with the judgment promising to appeal.

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