The Kwara State Government has asked the Supreme Court to compel the Federal Government to pay it $58,505,759 which has allegedly accrued for over 21 years.
In its suit with number SC/1/2015, the Kwara State Government claimed that the Federal Government collected the money on its behalf from a foreign company since 1993.
The Kwara State Government accused the Federal Government of failing to release the money which it said was an overpayment of a foreign loan it obtained and guaranteed by the Federal Government.
The suit, being a dispute between a state government and the Federal Government, was filed for the first time at the Supreme Court.
The Attorney-General of the state, representing the state government, is the only plaintiff.
The plaintiff sued the Attorney-General of the Federation and Minister of Justice, representing the Federal Government, as the only defendant.
In the statement of claim, the plaintiff stated that sometime in 1983, it was a beneficiary of an external loan negotiated by the Federal Government on its behalf through the Paris Club assessed through Danski Eksporte Finanser Ingsfond (a Danish Export Finance Corporation).
The plaintiff also stated that the loan which was obtained with the backing of the Federal Government was meant and used for the establishment of hospital projects all over the state.
It also claimed that the Central Bank of Nigeria, as agent of the Federal Government, through whom all the foreign transactions were conducted, duly received the sum for the benefit of the plaintiff but failed, refused and neglected to pay over the said sum to the plaintiff up till date.
The plaintiff averred that it had entered into various correspondences with the Central Bank of Nigeria, Accountant General of the Federation, Director General of Debt Management Office, Minister of Finance and the Attorney General of the Federation on this sum which the Federal Government had and received on behalf of the plaintiff but which it refused and neglected to pay over.
The plaintiff is therefore claiming the sum of $58,405,759.44 made up of the unpaid balance of $7,821,552.55 due to the plaintiff from the defendant with accrued interest at the rate of 7.75 per cent from July, 1986 till December, 2014.
It is also claiming 7.75 per cent interest on the total outstanding sum from January, 2015 till the date of judgment and 10 per cent on the total judgment sum from the date of judgment till the final liquidation.
No date has been fixed for hearing of the suit. Click to signup for FREE news updates, latest information and hottest gists everyday
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