The Body of Attorney-General of state government in Nigeria have, on behalf of the 36 governors, warned the Federal Government against deducting $418 million Paris Club Loan from state funds.
Driving the news
The state government and 774 local governments have maintained that they are not part of the Paris suit and therefore are not liable to the debt judgment being instigated by the federal government.
The payment of $418 million to consultants referred to as Paris Club refund has become a controversial issue between the three tiers of government.
- Consultants say the loan is a percentage of the amount for services rendered to both state and local governments.
- The federal government obtained a court order, giving it the right to deduct state funds.
What they are saying
The state government speaking through the body of the attorney-generals of the federation in a letter to the Minister of Finance dated April 4th said in addition to playing no part in the contract regarding the Paris Club loan, the states have filed a motion on notice for an injunction.
Notice of injunction
The notice of injunction restrains the federal government from effecting the deduction as this would be an interference with the rest of the suit. Therefore, the federal government would have to await the outcome of the hearing and determination of the appeal by the States of the Federation before taking any action.