States oppose planned deduction of $418 million Paris Club loan
The 36 states of the federation have warned the Federal Government not to deduct $418 million from their revenue allocation, under the pretext of defraying the London/Paris Club Loan judgment debts.
In their letter to the Minister of Finance, the Body of Attorneys-General of the Federation, warned that such deduction would be illegal and in contempt of their appeal challenging the judgment.
Excerpt of their letter reads: “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 the liquidation of the London/Paris Club Loan refund-related judgment debts on behalf of the 36 States of the Federation and the 774 local government 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 25th March 2022 between A.G Abia State v. President, Federal Republic of Nigeria & 42 Ors. and, therefore, the issue is sub judice.”
