You can’t deduct our allocations for London/Paris Loan refund, states fire FG

The 36 state governments have warned the Federal Government not to deduct from its shares of the federation allocation for the purpose of settling London/Paris loan debts.

The governors, who wrote to the Federal Government through the body of Attorneys-General of the Federation, warned that any deduction from the allocations of the 36 state and 774 LGAs would amount to contempt of court.

The letter was signed by body of Attorneys-General of the Federation’s Interim Chairman, Mr. Moyosore Onigbanjo (SAN) of Lagos State and Interim Secretary, Dr. Abdulkarim Abubakar Kana of Nasarawa State, as well as the Attorneys-General of Rivers, Abia, Taraba, Benue, and Zamfara states, for and on behalf of all the states Attorneys-General.

“Their Excellencies have drawn our attention to your letter referenced above, which the various states of the federation received at about the end of March 2022.

“The letter notifies the states of your intention to commence deduction from allocations due to the states from the Federation Account for liquidation of the London/Paris Club Loan refund-related judgment debts on behalf of the 36 states of the federation and the 774 local councils.

“Please, note that the states of the federation were not parties to any contract or suits concerning the London/Paris Club refund, from which the said judgment debts arose.

“Consequently, the 36 states of the federation are not liable to any person or entity in any judgment debt.

“The appeal challenges the Federal High Court’s (per Honourable Justice Inyang Ekwo) judgment delivered on March 25, 2022 between A.G Abia State v. President, Federal Republic of Nigeria & 42 Ors. and, therefore, the issue is sub judice,” the lerrer said in part.

The letter added that the body’s legal representatives had published a public caveat in national dailies notifying the public of the pending appeal, which also advised concerned parties “to desist from dealing with the subject matter thereof pending the hearing and determination of the appeal and the application for injunction pending appea.l.

It said: “The law requires you to restrain from taking any step whatsoever that is capable of interfering with the rest of the suit, which is now a subject of an appeal.

“Accordingly, Nigerian case law enjoins you to refrain from effecting any deduction whatsoever from the allocations due to the 36 states from the Federation Account for the liquidation of the London/Paris Club Loan refund-related judgment debts purportedly on behalf of the 36 States of the federation and the 774 Local Councils, pending the hearing and determination of the appeal by the states of the federation. Doing otherwise in the face of the pending Appeal and Motion on Notice for Injunction pending appeal shall be at your peril.”