Nigerian governors frown at FG for over $418m in Paris Club deductions

Nigerian governors under the aegis of the Nigeria Governors' Forum (NGF) have again resisted attempts to start deducting $418 million in Paris Club reimbursements allegedly owed to four contractors from the federation's account  .

  The governors, in a letter to the Federal Government through the Secretary of the Federation Government (SGF), Boss Mustapha, argued that an attempt to restart the deduction process, which is being challenged in court and for which  the Supreme Court has ruled, would be unconstitutional.

  The letter, signed by NGF Chairman and outgoing Governor of Ekiti State, Kayode Fayemi, describes the new decision as an "attempt by the Attorney General of the Federation (AGF) and the Minister of Finance (HMF) to circumvent  law and the recent Supreme Court ruling in surreptitiously obtaining FEC approval to effect payment of $418 million to four contractors who allegedly performed contracts regarding Paris Club reimbursements to the states and  to local governments.

  The approval of President Muhammadu Buhari under the aegis of the AGF, Abubakar Malami, and the Minister of Finance, Zainab Ahmed, to pay the said sum to the contractors through the issuance of promissory notes, had met with strong resistance from the  from the 36 state governors who had approached the court for redress through their attorneys general.

  Case pending

  The governors argued that the case is currently pending appeal to the Abuja Court of Appeal for hearing, adding that the Nigerian government should show restraint in its handling of the case.

  “Significantly, while this appeal is pending, one of the contractors, who is the beneficiary of the promissory notes in the amount of USD 142,028,941.95, Riok Nigeria Limited and who had lost in 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. On June 3, 2022, the Supreme Court also dismissed the appeal of  Riok as unfounded,” NGF said.

  The governors argued that the Supreme Court had on occasion clarified that neither NGF nor ALGON had the authority to award contracts and charge them directly to the Federation account, as was done in  this case.

  “The dismissal of the RIOK case by the SC also affected the payment of $1,219,440.45 and $215,195.36 to two private lawyers of RIOK, NWAFOR ORIZU and OLAITAN BELLO who are also beneficiaries of promissory notes by  the DMO," the letter reads.