A Federal High Court in Abuja, has dismissed the suit filed by the 36 states of the federation seeking to stop the Federal Government from deducting $418million from their bank accounts to settle debts in relation to the Paris Club Refund.
The Attorneys-General of the states had challenged the federal governments decision to withdraw money from state accounts to settle consultants that facilitated the Paris Club Refund.
The Plaintiffs told the court that the Federal Government had insisted that the fund it intends to withdraw from the accounts, monthly, was to service a debt for contracts that were allegedly executed for the states.
They told the court that after the said contracts were carefully scrutinized, as well as a purported judgement debt the FG relied on, it was found that the 36 states were not parties to court action that resulted to the judgment debt.
The Attorney Generals maintained that allowing such withdrawal would cripple the states financially.
They had submitted that the purported contracts claimed to have been executed for the states, were not known to any of the 36 state governments and was therefore a phony contract, adding that FG was the only party to the court case that led to the said judgment.
Among those cited as Defendants in the matter, were the Attorney General of the Federation, the Finance Minister, Accountant General of the Federation and all banks in Nigeria, Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, Incorporated Trustees of Association of Local Government of Nigeria, ALGON, as well as the consultants.
The Defendants, through their lawyers, urged the court to dismiss the suit for want of competence
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 dollars judgment debt in relation to Paris Club Refund pending the determination of the substantive suit.
Among 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.
Jibrin Okutekpa counsel for the applicants informed the court that although the Federal Government had not commenced the deduction of the monies but expected to begin in November, 2021.
In his judgement Justice Inyang Ekwo dismissed the suit on grounds that it lacked merit stating that the Attorneys-General of the 36 states did not have the competence to institute the suit on behalf of the governors without their consents, noting that the AG’s are only appointees of the Governor.
Editor Paul Akhagbemhe
