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BREAKING: Court Dismisses Suit Against FG’s $418m Paris Club Debt Deduction

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  • Court has dismissed a suit by the Attorney’s General of the 36 States Governments against the Federal Government.

  • Defendants in the suit are the Attorney General of the Federation, Finance Minister, Accountant General of the Federation and all banks in Nigeria among others.

EKO HOT BLOG reports that a Federal High Court in Abuja has dismissed the suit filed by the 36 States against the decision by the Federal Government to deduct $418million from the funds standing to the credit of the States to pay debts owed consultants engaged in relation to the Paris Club refunds made to States.

Defendants in the suit are the Attorney General of the Federation, Finance Minister, Accountant General of the Federation and all banks in Nigeria among others.

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By the suit marked: FHC/ABJ/CS/1313/2021, the plaintiffs are seeking an order to restrain President Muhammadu Buhari and others from effecting the planned deduction from States’ funds to settle the debt owed consultants

However, in his judgment on Friday, Justice Ekwo held that Plaintiff has not shown enough evidence to accord them the locus standi to institute the action.

“There was no express evidence to show that the State Governors consented to filing of the suit.
“The office of the Attorney General of a State was created under Section 195 of the 1999 Constitution, as amended.

Justice Inyang Ekwo, in a judgment on Friday, upheld the objection by some of the defendants and held that the States’ Attorneys General, who filed the suit on behalf of the States lacked the locus standi (the right to initiate an action before a court) to filed the suit.

Justice Ekwo noted that since the debt being challenged arose from the actions of the Governors, who are members of the Nigeria Governors’ Forum (NGF), the AGs, who are appointees of the Governors, cannot sue to challenge the actions of their appointors.

The judge also held that the suit amounted to an abuse of court process in that it was intended to seek a review of judgments already given in favour of the consultants.

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