EconomyNewsPoliticsFederal High Court Fix Date On $418 million Suit By State Governors

ABUJA — An Abuja Federal High Court presided over by Justice Inyang Ekwo has fixed March 25, 2022, for judgment in the suit filed by the 36 state governments against the plan by the federal government to deduct $418 million from states’ funds to settle debts owed consultants engaged by the states and local governments in relation to the Paris Club refunds.

The plaintiffs in the suit are seeking to restrain President Muhammadu Buhari and others from affecting the planned deduction from states’ funds to settle the debt owed to consultants engaged by states and local government councils.

The court fixed the date after lawyers to parties in the suit, marked: FHC/ABJ/CS/1313/2021, adopted their final written addresses and made final submissions.

The lead plaintiffs’ lawyer, Sunday Ameh (SAN), in his final submission, argued that the defendants misconstrued the kernel of his clients’ suit.

Ameh condemned the argument by the defendants that the suit was challenging the judgments given by the court in favour of some of the consultants.

“We are not challenging the judgments; we are saying the way the federal government and its agencies are going about enforcing the judgments violates sections 120 and 162 of the Constitution.

The defendant’s lawyer, Maimuna Lami Shiru, acting director of civil litigation, Federal Ministry of Justice, said the plaintiffs are seeking the impossible by asking the court to sit on appeal over judgments earlier delivered by it and other courts of coordinate jurisdiction.

“The plaintiffs have not appealed against the judgments of this court and the High Court of the Federal Capital Territory (FCT) that the contracts awarded to the consultants are valid,” she said.

Shiru represented the president, Federal Republic of Nigeria; the Attorney-General of the Federation (AGF), the accountant-general of the federation (AGoF), the Ministry of Finance Incorporated and the Debt Management Office (DMO), sued as the first, second, third, fourth and sixth defendants in the suit.

Shiru argued that the decision by the federal government to issue promissory notes to the consultants as a way of settling the debt owed them was legitimate, adding that the plaintiffs cannot distance themselves from the decision taken by the Nigeria Governors’ Forum (NGF) in engaging some of the consultants.

 Chief Olusola Oke, who represented Riok Nigeria Limited and Prince Nicholas Ukachukwu, argued that the suit has no merit and should be dismissed, arguing that the promissory notes issued by the federal government were charged on its property and not those of the states.

Hassan Umar Shallpella (Regional Correspondent)
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