A Federal High Court, in Abuja, has stopped the federal government from deducting Paris Club debt worth $418 million from the bank accounts of the 36 States of the federation.
Recall that the court in a ruling that was delivered by the presiding judge, Inyang Ekwo, ordered the Federal Government to suspend the planned action, pending the determination of a suit brought before it by governments of the 36 States. Ekiti State Governor, Kayode Fayemi, last week said State governments will not accept arbitrary deductions of funds by the FG.
The same Judge Inyang Ekwo yesterday issued a restraining order against the Federal Government following an ex-parte application filed by the lawyers to the 36 States.
Jibrin Okutepa, who led the legal team of the States, told Ekwo that the 36 States would be completely crippled if the Federal Government deducts the huge amount from the bank accounts of the States.
He stated that the FG had revealed the plan to deduct the $418 million from the accounts of States every month, as part of debts for contracts allegedly executed for the States.
He however indicated that the 36 States’ Attorneys-Generals have read the purported judgment displayed by the FG and found that the states were not parties to the court action which resulted in the judgment debt.
After listening to the arguments of the 36 States, Ekwo restrained the FG from deducting from the States in respect of the purported court judgment until all issues relating to it were fully determined.
The judge fixed the matter for November 30, 2021.
