Court Dismisses 36 States Suits Challenging FG’s Deduction Of $418m

Federal High Court, Abuja has dismissed the $418 million Paris Club debt suit filed by the 36 state governments against the Federal Government of Nigeria.

Gatekeepers News reports that Justice Inyang Ekwo in a judgement on Friday 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 file the matter.

On November 5, 2021, the court restrained the Federal Government from deducting monies accruing to the 36 states from the federation account to settle 418 million dollars judgment debt in relation to Paris Club Refund pending the determination of the substantive suit.

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

While the 36 states Attorney-Generals are the plaintiffs on the suit, some of the defendants listed in the suit include the Attorney-General of the Federation, Accountant-General of the Federation and Ministry of Finance.

Others include the Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, Incorporated Trustees of Association of Local Government of Nigeria, among others.

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

Out of the four prayers sought, 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 earlier informed the court that the Federal Government had not commenced the deduction of the monies, withdrew the fourth prayer and requested for a refund of the monies deducted.

He further hinted that the deduction was expected to begin in November 2021, adding that in spite of his clients’ protest against such action, the defendants had vowed to go ahead with the deduction.

Okutekpa noted that if allowed, no state would be able to pay workers’ salaries.

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

Okutekpa added, “That is why we ran to your court.”