Justice Iyang Ekwo of the Federal High court Abuja division has dismissed an application by the attorney generals of the 36 states of the federation seeking an order to permanently restrain the Federal Government from deducting monies accruing to the state over the $418 million Paris Club refund.
The judge made the order on Friday. He held that the case by the plaintiffs lacked merit.
On February 15, counsels in the matter had adopted their final written addresses and today was slated for judgement.
Read: Paris Club Refund: Governors say Malami working against public interest, colluding with consultants
The judgement
Justice Ekwo noted that the constitution does not prohibit deduction based on contracts entered into by the NGF on behalf of their states; it simply bars “arbitrary deduction.”
“It is on that basis that this court cannot review judgement given by a coordinate or higher court. I dismiss the case for being an abuse of the court process.
“I find that the plaintiffs have no locus standi to bring this action and I, so hold,” the judge ruled.
The judge said the plaintiff needed not to institute this case in the manner they had done but to sue the governors as well as file a suit praying for the judgment debt to be set aside.
Read: These 5 states will not be paid $2.7 billion Paris Club Refund, here’s why
Backstory
In 2016, the federal government paid $12 billion to get an $18 billion debt write-off by the Paris Club of international creditors.
The FG sought to deduct the Paris club refund from the accounts of the 36 state governments.
On October 27, 2021, the 36 state governments instituted a suit against the AGF, the ministry of finance, the Central Bank of Nigeria and others seeking to restrain them from deducting monies accruing to them over the $418 million Paris club refund.
The judge said the plaintiffs should have filed a suit praying for the judgment debt to be set aside.
Read: Nigeria’s local debt to hit N43 trillion in 2022 – Agusto & Co
What you should know
In an ex-parte motion moved by Jibrin Okutekpa (SAN) Counsel to the 36 state governments, the state governments sought an interim injunction, restraining the federal government from deducting monies accruing to them over the $418 million Paris club refund.
While the 36 states attorney-generals are the plaintiffs in the suit, the defendants are 43 in number.
