Court rejects request to join state A-Gs in FG’s suit to block $418m debt

A Federal High Court in Abuja has rejected an application by state Attorneys- General seeking to be made a party to a Federal Government suit seeking to block the redemption of promissory notes issued to some consultants/contractors in relation to the Paris Club refunds dispute.

The consultants/contractors had claimed to have been engaged by the Nigeria Governors’ Forum (NGF) and the Association of Local Governments of Nigeria (ALGON) to retrieve their shares of the Paris Club refunds. They got judgments against the states to pay them about $418 million.

Listed as defendants by the government are FSDH Merchant Bank Limited, Ned Munir Nwoko, Gregory Lar, Riok Nigeria Ltd, Orji Orizu, Olaitan Bello, Ted Edwards, and Panic Alert Security System Limited who make up the consultants/contractors.

In the suit marked FHC/ABJ/CS/896/2023, the Federal Government joined the Attorney-General of the Federation (AGF), the Minister of Finance, Budget and National Planning, and the Accountant General of the Federation as co-plaintiffs.

Yesterday, Justice Inyang Ekwo held that the Attorneys-General were not necessary parties to the suit. He described the application as defective and posited that the suit could be effectively determined by the court without their involvement.

Ekwo consequently adjourned till October 22 for the hearing of the preliminary objection raised by the defendants against the competence of the suit.

The Attorneys-General had argued that being representatives of their states whose funds would be affected by the promissory notes, they ought to be heard by the court.

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