By Louis Achi
President Bola Ahmed Tinubu has moved to block the payment of USD418million Paris Club Refund payments by the Nigeria Governors’ Forum, NGF, to some consultants on account of procedural flaws surrounding the deal, The New Diplomat has gathered.
In a recent suit filed before Justice Inyang Ekwo of the Federal High Court sitting in Abuja, the federal government rejected the process by which promissory notes were issued to the consultants.
The promissory notes numbering 62 were issued to consultants/contractors engaged by the Nigeria Governors’ Forum and the Association of Local Governments of Nigeria (ALGON) under the administration of former President, Muhammadu Buhari.
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 Attorney General of the Federation, the Minister of Finance, Budget and National Planning and the Accountant General of the Federation were also listed as respondents in the suit.
The federal government and three listed plaintiffs in the suit are praying the court to, among others, void all the promissory notes and issue an order of perpetual injunction restraining the defendants and their agents “from exercising any proprietary rights” over the promissory notes.
It could be recalled that 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 were 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.
Among others issues, the plaintiffs are contending that the promissory notes are invalid because they were wrongly issued in violation of relevant laws. They added 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.
From TND checks, a Principal State Counsel in the Federal Ministry of Justice, Mr. Oyinlade Koleosho, reportedly stated in a supporting affidavit that the promissory notes were wrongly and invalidly issued against the assets of the federation, stressing that sections 314 and 317 of the 1999 Constitution of the Federal Republic of Nigeria have separated the assets of a state or local government from the assets of the federation or the Federal Government of Nigeria.
The 62 promissory notes issued to the defendants are invalid because they were charged on the assets of the Fed Govt, who is not indebted to any of the defendants (contractors/consultants), Koleosho further argued.
The plaintiffs further claimed that the Federal Government of Nigeria did not engage any of the defendants, saying there is no valid consideration for the promissory notes issued to them (defendants).
From TND checks, court documents showed that FSDH Merchant Bank Limited was issued 10 promissory notes for the 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 Federal Government of Nigeria promissory notes issued for the total value of $142,028, 941.00, at the rate of $14,202,895.00 per note.
Prince Orji Nwafor Orizu was issued 10 promissory notes for the total value of $1,219,440.00 at the rate of $121,944.00 per promissory note.
Olaitan Bello is said to have been issued eight promissory notes for the total value of $215,195.00 at the rate of $21,524.00 per promissory note.
Dr. Ted Iseghohi Edwards is said to have got 10 promissory notes for the value of $159,000,000.00, at the rate of $15,900,000.00 per note.
Panic Alert Security System Limited was also issued 10 promissory notes for the value of $47,831,920.00 being the total value of the 10 notes, with a value of $4,783,192.00 per note.
