The Nigerian government has petitioned a federal high court in Abuja to nullify promissory notes given to consultants in connection with the Paris Club refund.
The suit numbered, 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 federation's accountant-general.
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 are among the defendants.
The controversial payment of $418 million to consultants (defendants in the suit) hired by the Nigeria Governors' Forum (NGF) and the Association of Local Governments of Nigeria (ALGON) has become a point of contention amongst the three tiers of government.
As a result of many judgments and orders of mandamus obtained by the defendants, the Debt Management Office (DMO) issued 62 promissory notes worth $418,953,668 to the defendants on September 27, 2021.
The plaintiffs claim, among other things, that the promissory notes were issued improperly and in contravention of applicable laws, rendering them invalid.
They claimed that even though the director-general of the DMO and the then-minister of finance, budget, and national planning signed the promissory notes, the required signature was not inserted.
Oyinlade Koleosho, a principal state attorney in the federal ministry of justice, said in a supporting affidavit that the promissory notes were illegally and invalidly issued against the federation's assets.
“The promissory notes in issue were wrongly and unlawfully charged on the assets and revenues of the federation instead of the assets and revenues of the states and local governments, who incurred the applicable loans/debts,” the affidavit reads.
The lawyer said sections 314 and 317 of the constitution have separated the assets of a state or local government from the assets of the federation or the federal government of Nigeria.
The plaintiffs also claimed that since the defendants were not engaged by the federal government, there is no valid consideration for the promissory notes issued to them (defendants).
According to court documents, FSDH Merchant Bank Limited was issued 10 promissory notes for a 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 promissory notes valued at $142,028, 941.00, at the rate of $14,202,895.00 per note.
Orji Nwafor Orizu was issued 10 promissory notes valued at $1,219,440.00 at the rate of $121,944.00 per note.
Olaitan Bello was said to have been issued eight promissory notes valued at $215,195.00 at the rate of $21,524.00 per note.
The documents said Ted Iseghohi Edwards got 10 promissory notes for the value of $159,000,000.00, at the rate of $15,900,000.00.
Panic Alert Security System Limited was also issued 10 promissory notes for the value of $47,831,920.00, at $4,783,192.00 per note.
