$418m debt: Court dismisses 36 govs’ suit against FG

A Federal High Court, Abuja, on Friday, dismissed the $418 million Paris Club debt suit filed by the 36 state governments against the Federal Government.

Justice Inyang Ekwo, in a judgement, dismissed the suit for lacking in merit.

“I do not see any merit in this case on the whole and I hereby dismiss it for lack of merit,” Justice Ekwo said.

The judge held that the 36 states’ attorneys-general, who instituted the suit had no locus standi to filed the matter.

The court had, on Nov. 5, 2021, restrained the Federal Government from deducting monies accruing to the 36 states from federation account to settle $418 million judgement debt in relation to Paris Club Refund pending the determination of the substantive suit.

The court gave the order following an ex-parte motion moved by counsel to the plaintiffs, Jibrin Okutekpa, SAN.

The 36 states Attorneys-General are the plaintiffs on the suit.

Some of the defendants listed in the suit include the Attorney-General of the Federation (AGF), Accountant General of the Federation and Ministry of Finance.

Others are Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, Incorporated Trustees of Association of Local Government of Nigeria (ALGON), among others.

According to the motion dated and filed Oct. 27, 43 defendants are sued in the matter.

Although four prayers were sought for, Justice Ekwo granted three in the motion ex-parte.

The reliefs sought by the plaintiffs include an order of interim injunction, restraining the Federal Government from deducting any money accruing or due to all or any of the 36 states of the federation.

The senior lawyer, who informed the court that the Federal Government had not commenced the deduction of the monies, withdrew the fourth prayer, asking for a refund of the monies deducted.

He hinted that the deduction was expected to begin in November 2021.

He said in spite of his clients’ protest against such action, the defendants had vowed to go-ahead with the deduction.

He said if allowed, no state would be able to pay workers’ salaries.

Besides, Okutekpa argued that the states were not party to any contract resulting in such debts.

“That is why we ran to your court,” he said.

The Star