Paris Club refund: Court stops FG from deducting $418m from states

A Federal High Court in Abuja has ordered President Muhammadu Buhari, the Attorney General of the Federation (AGF) and five others to refrain from proceeding with the planned deduction of about $418 million from the accounts of the 36 states in settlement of alleged debt from the Paris Club Refund.

Justice Inyang Ekwo issued the order after listening to Jibrin Okutepa (SAN) and Ahmed Raji (SAN) who argued the states’ ex-parte application.

Also restrained by the court order were the Accountant General of the Federation, Ministry of Finance, the Central Bank of Nigeria (CBN), Debt Management Office (DMO) and Federation Account Allocation Committee (FAAC) -who are all listed as the first to seventh defendants in suit FHC/ABJ/CS/ 1313/2021.

Recall that Checkout Magazine reported an alleged rift between the Federal Government and States over the planned deduction from the monthly allocation.

While moving the ex-parte motion filed by the 36 states, Otukepa, argued that his clients would be crippled if the Federal Government, acting through the first to seventh defendant, went ahead to deduct the huge amount from the bank accounts of the States.

He said the Federal Government claimed that the planned monthly deduction, scheduled to commence at the end of November, was to settle debts for contracts allegedly executed for the states.

Otukepa, however, said that the 36 states’ Attorneys-General have read the purported judgment displayed by the Federal Government and found that the states were not parties to the court cases which led to the judgment debt.

In a brief ruling, Justice Ekwo granted three of the four reliefs contained in the ex-parte motion, with the one that sought a refund, which Okutepa agreed to withdraw on the grounds that no deduction had been made.

Justice Ekwo then adjourned further hearing till November 30.

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