Appeal Court quashes N38.8bn judgment against CBN in Paris Club Refund dispute

The Court of Appeal sitting in Abuja, Friday, set aside and dismissed a N38,878,451,742.22 judgment earlier entered by a Federal High Court in favour of Mr. Joe Agi, SAN, over alleged consultancy fees arising from the Paris Club Refund.

The appellate court, in a unanimous decision, held that the Federal High Court lacked jurisdiction to entertain the suit and consequently nullified both the substantive judgment and the garnishee proceedings initiated to enforce it against the Central Bank of Nigeria.

Mr. Agi had, in 2017, instituted the suit against the Honourable Minister of Finance, the Incorporated Trustees of the Nigeria Governors’ Forum, and the Attorneys-General of the 36 states, claiming entitlement to 20 per cent of the Paris Club Refund as consultancy fees.

Judgment was entered in his favour in 2022, prompting appeals by the Nigeria Governors’ Forum and the Attorneys-General of the 36 states.

Following the judgment, the claimant commenced garnishee proceedings and secured a Garnishee Order Nisi against the Central Bank of Nigeria. Despite objections raised by the apex bank, the Federal High Court, on October 18, 2022, made the order absolute.

Dissatisfied, the CBN and the Attorneys-General of the 36 states filed separate appeals challenging the garnishee order.

In its judgment delivered on Friday, the Court of Appeal held that debt recovery matters fall outside the exclusive jurisdiction of the Federal High Court as provided under Section 251 of the 1999 Constitution (as amended).

The court further held that Mr Agi lacked the requisite locus standi to institute the action.

Consequently, the appellate court allowed the substantive appeals and declared that the related garnishee appeals, including that filed on behalf of the CBN by Prof. Fabian Ajogwu, SAN, and O. Atoyebi, SAN, had become academic.

Reacting to the judgment, the CBN hierarchy described the decision as a significant legal victory, noting that it relieves the bank of an enforcement liability exceeding N38.8 billion.

The ruling effectively brings to a close years of litigation surrounding consultancy claims tied to the Paris Club Refund.