Court of Appeal sitting in Abuja has overturned a N38.8 billion judgment earlier awarded against Central Bank of Nigeria (CBN) in a protracted legal battle over consultancy fees tied to the Paris Club refund.
Gatekeepers News reports that in a unanimous decision delivered on February 20, the appellate court set aside the ruling of the Federal High Court which had granted Joe Agi, a Senior Advocate of Nigeria, 20 percent of the Paris Club refund as consultancy entitlement.
The dispute dates back to 2017 when Agi filed a suit against the Minister of Finance, the Incorporated Trustees of the Nigeria Governors’ Forum, and the Attorneys-General of the 36 states, claiming that he played a key role in facilitating the refund process.
The Federal High Court ruled in Agi’s favour in 2022, leading to an award of over N38.8 billion. Following the judgment, Agi initiated garnishee proceedings to enforce the payment and successfully secured a garnishee order nisi against the CBN. Despite objections raised by the apex bank, the lower court later made the order absolute on October 18, 2022.
The CBN and the Attorneys-General of the 36 states subsequently challenged both the substantive judgment and the garnishee orders at the Court of Appeal.
In its ruling, the appellate court held that the Federal High Court lacked the jurisdiction to entertain the matter, noting that the claim amounted to a debt recovery suit which does not fall within the exclusive jurisdiction of the court as provided under Section 251 of the 1999 Constitution (as amended). The court also ruled that Agi lacked the legal standing to institute the action.
Having resolved the jurisdictional issues, the court allowed the appeals and declared the garnishee proceedings null and void, effectively cancelling the enforcement process and freeing the CBN from any obligation to pay the sum of N38.8 billion.
The ruling brings an end to years of legal contest surrounding the Paris Club refund consultancy claims.
