The Nigerian government has asked a federal high court in
Abuja to void promissory notes issued to consultants with respect to the Paris
Club refund.
The suit marked FHC/ABJ/CS/896/2023, was filed by the
federal government, the attorney-general of the federation, the minister of
finance, budget and national planning and the accountant-general of the
federation.
The defendants include FSDH Merchant Bank Limited, Ned Munir
Nwoko, Gregory Nangor Lar, Riok Nigeria Limited, Prince Orji Nwafor Orizu,
Olaitan Bello, Dr. Ted Iseghohi Edwards, and Panic Alert Security System
Limited.
The controversial payment of $418 million to consultants (defendants in the suit) who were engaged by the Nigeria Governors’ Forum (NGF) and the Association of Local Governments of Nigeria (ALGON) has become a contentious issue between the three tiers of government.
On September 27, 2021, the Debt Management Office (DMO)
issued 62 promissory notes worth $418,953,668 to the defendants as a result of
several judgments and orders of mandamus obtained by the defendants.
The plaintiffs are contending, among others, that the
promissory notes are invalid, having been wrongly issued in violation of
relevant laws.
They argued that although the promissory notes were executed
by the then minister of finance, budget and national planning and the
director-general of the DMO, the notes were not signed as required.
In a supporting affidavit, Oyinlade Koleosho, a principal
state counsel in the federal ministry of justice, said the promissory notes
were wrongly and invalidly issued against the assets of the federation.
“The promissory notes in issue were wrongly and unlawfully
charged on the assets and revenues of the federation instead of the assets and
revenues of the states and local governments, who incurred the applicable
loans/debts,” the affidavit reads.
The lawyer said sections 314 and 317 of the constitution
have separated the assets of a state or local government from the assets of the
federation or the federal government of Nigeria.
The plaintiffs also claimed that since the defendants were
not engaged by the federal government, there is no valid consideration for the
promissory notes issued to them (defendants).
According to court documents, FSDH Merchant Bank Limited was
issued 10 promissory notes for a total value of $67,925,661.00, at the rate of
$6,499,561.00 per note (allegedly for the benefit of Nwoko).
Gregory Nangor Lar, who is described as Nwoko’s agent, was
issued two promissory notes “for the account/benefit of the second defendant
(Nwoko) for the total value of $732,511.00 at the rate of $366,256.00 per
note”.
Riok Nigeria Limited was issued 10 promissory notes valued at
$142,028, 941.00, at the rate of $14,202,895.00 per note.
Orji Nwafor Orizu was issued 10 promissory notes valued at
$1,219,440.00 at the rate of $121,944.00 per note.
Olaitan Bello was said to have been issued eight promissory
notes valued at $215,195.00 at the rate of $21,524.00 per note.
The documents said Ted Iseghohi Edwards got 10 promissory
notes for the value of $159,000,000.00, at the rate of $15,900,000.00.
Panic Alert Security System Limited was also issued 10 promissory
notes for the value of $47,831,920.00, at $4,783,192.00 per note.
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