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From Godwin Tsa, Abuja
The Abuja division of the Federal High Court has fixed March 25 to deliver judgment in the suit filed by the 36 states of the federation to stop the Federal Government from deducting $418 million from their bank account to settle debt in relation to the Paris Club refund.
Justice Inyang Ekwo fixed the date after counsel to both parties had adopted their processes and presented their arguments for and against the suit.
Among those cited as defendants in the case, are the Attorney General of the Federation, the Finance Minister, Accountant General of the Federation and all banks in the country, Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, as well as Incorporated Trustees of Association of Local Government of Nigeria.
On November 5, 2021, the states had moved an application they prayed the court to intervene and stop the Federal Government from proceeding with the $418 million deduction which they said would completely cripple them financially.
They told the court that the Federal Government had insisted the fund it intends to withdraw from their accounts monthly, was to service a debt for contracts that were allegedly executed for the states.
The plaintiffs told the court that after the said contracts were carefully scrutinised by their various attorneys general, as well as a purported judgment debt the Federal Government relied on, it was found that the 36 states were not parties to court action that resulted to the judgment debt.
Lead counsel to the plaintiffs, Jubril Okutekpa, further submitted that the purported contracts claimed to have been executed for the states, were not known to any of the 36 state governments and is therefore a phoney contract.
He told the court that the Federal Government was the only party to the court case that led to the judgment and, therefore, argued that such judgment was not binding on the state governments.
However, the Federal Government has challenged the jurisdiction of the Federal High Court in Abuja to hear the suit.
The government maintained that its decision to deduct the fund to settle some consultants, was based on a previous verdict of the court.
It argued that since the court had earlier decided on the matter, proceeding with the instant suit by the states would amount to sitting on appeal over its own judgment.
The states, through their lawyer, Sunday Ameh, had urged the court to issue the order to bar Federal Government from deducting any fund from their accounts, pending the determination of their suit.
Their application was opposed by counsel to the Federal Government, Maimuna Shiru, who is the acting director, Civil Litigation at the Federal Ministry of Justice.
Similarly, other defendants in the matter, comprising consultants and banks, also prayed the court to reject the request for an injunctive order, stressing that a subsisting judgment gave the Federal Government the nod to deduct fund for the purpose of settling contractual agreement pertaining to the Paris Club refund.
