Paris Club
HighlightTop StoryTrending Story

Paris Club refunds: 36 states lose $418m suit against FG

722

The Federal High Court sitting in Abuja has dismissed a suit filed against the Federal Government by the Attorneys-General of the 36 states of the Federation.

The 36 Attorneys-General, in a suit dated October 27, 2021, are challenging the planned deduction of $418 million from the Federation Account to settle debts owed consultants engaged by the states and local governments in relation to the Paris Club refunds.

Other defendants are the Central Bank of Nigeria, Debt Management Office (DMO), Federation Account Allocation Committee (FAAC), and Incorporated Trustees of Association of Local Government of Nigeria (ALGON).

Delivering his judgment on Friday, Justice Inyang Ekwo, dismissed the suit saying the attorneys-general have not shown enough evidence to accord them the right to institute the action.

He held that they lack the legal standing to institute the lawsuit without their governors’ consent as there was no express evidence to show that the governors of the 36 states consented to the filing of the suit.

He noted that the office of the Attorney-General of a state was created under Section 195 of the 1999 Constitution (as amended), adding that the Attorney-General of a state is appointed by a governor which makes him an appointee under the control of a governor.

He said: “The state Attorneys-General cannot on their own bring this suit given the provisions of Section 211 of the 199 Constitution

“This is beyond the powers of the states Attorneys-General to initiate this suit on their own.

“No cause of action can flow when a plaintiff lacks the legal standing to institute a suit.

“This suit does not fall within the class of suits that can be initiated by the State Attorneys-General without the consent of the governors.

“I find no merit in this suit and it is, accordingly, dismissed.”

Persecondnews.com recalls that Paris Club became popular in Nigeria in 2005 when it judged the federal government’s economic reforms as far-reaching, and focused that it canceled 60 percent of the country’s $30bn debt.

Before the debt was written off, the Federal Government had agreements with state governments to deduct certain amounts from their federal allocation to service the debts.

Following a final agreement with the club in October 2005, some states that have been over charged in the debt servicing arrangement applied for a refund.

Leave a comment

Related Articles

“No Deal”: Presidential Claimant Fernando Dias Rejects Guinea-Bissau Junta’s Transition Plan

By Paul Ejime Dr Fernando Dias da Costa, who claimed victory in...

UK Prosecutors Reveal Diezani Spent £140k on Luxury Furniture in One-Day Shopping Spree

As the trial of former Nigerian Petroleum Minister Diezani Alison-Madueke continues in...

“Democracy Forbids It”: Falana Argues Against Court-Martial for Soldiers in Alleged Coup

Mr. Femi Falana (SAN), prominent human rights lawyer, has argued that military...

Mass Deportation: US Prepares to Send 79 Convicted Nigerians Home

At least 79 Nigerians are set to be deported as the U.S....

“I Can Account for My Wealth”: Malami Petitions Court to Vacate Forfeiture Order

Former Attorney General of the Federation and Minister of Justice, Abubakar Malami...

At Last, N1.96 trn Federation Revenue Shared Among Federal, States, LGs

The Federation Account Allocation Committee (FAAC) has shared N1.969 trillion, the December...

Bonga FPSO Shutdown for Maintenance, Nigeria’s Oil Output to be Affected

Shell Nigeria Exploration and Production Company (SNEPCo) has announced the shutdown of...

Traders Count Losses as Fresh Fire Ravages Kano’s Singa Market

Barely two months after a crippling fire outbreak, Singa Market in Kano...

2,500 Kaduna’s Damau Residents Get Clean Water as REA Provides Solar Mini-Grid

More than 2,500 residents of Damau village in the Kubau Local Government...

Tragedy in Abuja: Rising Music Star Ifunanya Dies After Snake Bite

A bright light in Nigeria’s music scene has been extinguished. Ifunanya Nwangene,...

Ademola Lookman Set to Join Atlético Madrid in €40m Deal

Nigerian forward Ademola Lookman is poised to join Atlético Madrid in a...

Ogun Gov. Abiodun to Unveil State-Owned DisCo, New World Bank-Power Projects, Mini-grids

Ogun State is gearing up for a major power boost with the...

Back Home: Tinubu Touches Down in Abuja After Türkiye Trip

President Bola Tinubu has returned to Abuja after a five-day state visit...

January Salaries Delayed as FG, States Disagree Over ₦1.97trn FAAC Funds

A persistent deadlock over the distribution of ₦1.97 trillion has halted the...

Woman’s Death Mid-Flight: Nigerian Family Presses Ethiopian Airlines for Explanation, Transparency

Grief-stricken and seeking justice, a Nigerian family has raised the alarm over...

FG’s ₦58.47trn 2026 Appropriation Bill Scales Second Reading in Green Chambers

Nigeria’s House of Representatives has given the green light to the ₦58.47...

Kano Secures ₦1trn Rail Project After Governor’s High-Profile Defection to APC

Barely 48 hours after joining the ruling All Progressives Congress (APC), Kano...

Emefiele’s Trial: Ex-CBN Director Admits to $2.5m ‘Gift’ Linked to $6.2m Election Logistics Fund

Bashirudeen Maishanu, a former Deputy Director of Banking Supervision at the Central...

“Selective Payouts”: Dozens of ‘Concerned’ Lawyers Demonstrate at Finance Ministry, Abuja

Lawyers representing the Concerned Lawyers for Probity and Justice protested at the...

Historic Milestone: Sarah Mullally Confirmed As First Female Archbishop of Canterbury

History was formally etched into the foundations of the Church of England...