Paris Club: Court Restrains FG From Deducting From States’ Coffers

By Uche Mbah

Pending the resolution of the issues involved, a Federal High Court sitting in Abuja, Friday, ordered the Federal Government to stop deducting $418 million from the bank accounts of the 36 states of the Federation.

Justice Inyang Ekwo, the presiding Judge, issued the restraining order following an ex-parte motion filed by lawyers representing  the 36 States.

Jibrin Okutepa led the legal team of the States.

The States told Ekwo that withdrawing the money means crippling the 36 States.

The FG had planned to deduct the $418 million from state accounts every month to pay back debts incurred during contracts allegedly executed for the States. But the States were not party to the judgement that gave the Federal Government such powers.

The money was part of the States’ shares of the refund from the Paris Club.

In his ruling, the Judge said the FG should refrain from deducting from the funds until the issues are fully determined.

The Judge adjourned the matter to November 30, 2021.

He then ordered the lawyer to the stated to serve all processes on the defendants before the adjourned date.