The Nigerian Governors have expressed their anger with the federal government over the $418 million Paris Club deductions from the deration account, which the Nigerian Governors Forum (NGF), argue is unconstitutional.
Basic Facts
- The governors accuse Attorney General Malami and the Finance Minister Zainab Ahmed of circumventing the law by surreptitiously securing the approval of Federal Executive Council to effect the payment.
- The Governors under the umbrella of Nigeria Governors’ Forum (NGF) have resisted attempts to start the deduction of $418 million Paris Club refund allegedly owed four contractors from the federation account.
- In a letter to the federal government through the Secretary to the Government of the Federation (SGF), Boss Mustapha, the NGF argued that an attempt to restart the deduction process, which is being challenged in the courts and for which the Supreme Court has made pronouncement, would be unconstitutional.
Notable Quote
The letter which was signed by the outgoing Governor Kayode Fayemi of Ekiti State who doubles as the Chairman of the NGF, described the new move as an “attempt by the Attorney General of the Federation (AGF) and the Minister of Finance to circumvent the law and the recent judgement of the Supreme Court by surreptitiously securing the approval of the FEC to effect payment of the sum of $418 million to four contractors who allegedly executed contracts in respect of the Paris Club refunds to the states and local governments.”
The NGF further reiterated “Significantly, while that appeal is pending, one of the contractors, who is a beneficiary of the Promissory Notes in the sum of $USD 142,028,941.95, Riok Nigeria Limited and who had lost at the Court of Appeal, further appealed to the SC in SUIT NO: SC 337/2018 BETWEEN: RIOK NIGERIA LIMITED V INCORPORATED TRUSTEES OF NIGERIA GOVERNORS’ FORUM &7 ORS. The Supreme Court on 3rd June, 2022 also dismissed Riok’s appeal as lacking in merit,”
“Besides RIOK and the two lawyers, the States have also challenged either on appeal or other courts the claims by the other contractors including: DR. TED ISIGHOHI EDWARDS ($159,000,000), NED NWOKO ($68,658,192.83) and PANIC ALERT SECURITY SYSTEMS LTD ($47,831,920). These cases are pending and no steps ought to be taken to enforce the Judgment and alter the status quo until the matters are fully determined. A Caveat issued to restrain all parties concerned and the public from dealing or honoring Promissory Notes issued had earlier been published.”
“The funds certainly cannot be accessed through the Federation Account as vigorously pursued by the AGF and HMF. Those contracts as they stand are unconstitutional and unlawful and cannot vest any legal right on any of the contractors. It is immaterial that part of the contract sums has been paid.
“Those payments did not validate the unlawful nature of the contracts. The SC has spoken. It is final and must be obeyed. The excerpt of the decision of the SC is attached for ease of reference,” the governors argued.
Catch-up
The governors had through their state Attorney Generals approached the Supreme court in an attempt to stop the approval of President Muhammadu Buhari under the instrumentality of the AGF and Finance Minister, to pay the sum to the contractors through the issuance of promissory notes.
The governors had contended, that the matter is currently pending on appeal at the Court of Appeal in Abuja for hearing, adding that the Nigerian government should exercise restraint in its handling of the matter.
The governors noted further that the Supreme Court had on the occasion made clear that neither the NGF nor ALGON had power to award contracts and charge the same directly to the Federation Account as done in this case.
“The dismissal of RIOK’S case by the SC also affected the payment of $1,219,440.45 and $215,195.36 to two private lawyers to RIOK, NWAFOR ORIZU and OLAITAN BELLO who are also beneficiaries of Promissory Notes by the DMO,” the letter said.
