Sign in Subscribe
Cabinet officials

Nigeria Governors' Forum, Minority Caucus of House of Representatives Contest $418 Million Paris Club Judgment Debt Payment

Strategic Insights

— 2 min read

The Nigerian Governors' Forum, NGF, and the Minority Caucus of the House of Representatives have challenged the Federal Government's plan to pay $418 million to consultants who facilitated the country's debt relief from the Paris Club and London Club. The NGF queried the Finance Minister, Zainab Ahmed, for issuing promissory notes in favor of judgment creditors, despite pending court cases. The Minority Caucus of the House of Representatives warned that the reported approval of the payment by President Muhammadu Buhari would be an endorsement of corruption.

Key Takeaways:

  • The Nigerian Governors' Forum, NGF, queried Finance Minister, Zainab Ahmed, for issuing promissory notes to consultants who facilitated the country's debt relief from the Paris Club and London Club, despite pending court cases.
  • The Minority Caucus of the House of Representatives cautioned against the reported approval of the payment of $418 million Paris Club judgment debt by President Muhammadu Buhari, describing it as "cloudy, opaque, and raises apprehensions of huge swindle on the national treasure."
  • The NGF has been served with court processes seeking to stay the execution of judgment, and a hearing was fixed for September 29, 2021, but the Minister's office directed the Debt Management Office to issue promissory notes to contractors and consultants whose claims are still being challenged and contested in court.
  • The Minority Caucus called for a forensic audit into the claims by the creditors, insisting that the judgment was hazy, and warned that the consent judgment being relied upon for the payment was suspicious.
  • The Minority Caucus urged President Buhari to halt the payment processes until after the investigations, and to consider the objection raised by the Association of Local Governments in Nigeria, ALGON, and the Nigeria Governor's Forum, NGF, in calling for foreclosure audit into the claims by the creditors.
  • Kayode Fayemi, the NGF Chairman, has been leading the call for a review of the indebtedness since 2019, and the NGF engaged lawyer, Femi Falana, to challenge the judgments awarding shares of the Paris and London Club refunds to "consultants and contractors."

Statistics:

  • $418 million: the amount of payment approved for consultants who facilitated the country's debt relief from the Paris Club and London Club.
  • 30: the date of the NGF letter dated August 30, addressed to the minister through their lawyer, Mr. Femi Falana, SAN.
  • 13: the suit number of the Federal High Court in Abuja case, Linas International Limited & ORS V. the Federal Government of Nigeria & ORS.
  • 10: the number of years over which the promissory notes will be deducted from statutory allocations due to the states of the federation.
  • 2019: the year the Kayode Fayemi-led Nigerian Governors' Forum, NGF, asked for a review of the indebtedness, calling for a forensic audit into the agreements leading to the court judgments.

Sources:

  • Vanguard (2021) "Nigeria Governors' Forum, Reps Minority Caucus Tackle FG over Plan to Pay $418m Paris Club Judgment Debt"
  • AllAfrica Global Media (allAfrica.com) "Nigeria: Governors, Reps Minority Caucus Tackle FG Over Judgment Debt Payment"

Read more