Paris Club Scandal: Already Paid Under Buhari, Ned Nwoko Teams Up With AGF Fagbemi For Fresh $396Million Under Tinubu

A fresh controversy has erupted over Nigeria’s Paris Club refunds following revelations that a new $396 million payment is being proposed in favour of Senator Ned Nwoko, who represents Delta North senatorial district in the Nigerian Senate, and his associated firm, Linas International Limited, years after earlier disbursements were made and officially described as final.

Documents obtained by SaharaReporters show a contradiction between a 2018 directive under former President Muhammadu Buhari and a 2024 request under President Bola Tinubu, raising concerns over possible duplicate or questionable consultancy claims.

Nwoko served as the lead consultant for the Nigerian states and local governments to secure the Paris Club loan refund, totalling roughly $13 billion, through his firm Linas International.

Nwoko was engaged by states and local governments to help recover funds over-deducted by the federal government between 1995 and 2002.

Nwoko claims his firm is owed approximately $68 million for work completed in 2018. However, the NGF referred to a contentious $418 million figure involving multiple consultants, describing Nwoko’s claim as a “half-truth” and part of an “unholy alliance”.

Buhari-Era Settlement Declared Final

In her letter dated July 5, 2018, then Minister of Finance, Kemi Adeosun, wrote to President Buhari seeking approval to commence phased payments to states following the reconciliation of Paris Club over-deductions.

In the letter with reference number FMF/HMF/SH/PRES/PC/FINAL/2018, Adeosun acknowledged that further litigation threats had been received from consultants engaged by state governments, including Nwoko’s firm, Linas International Limited.

“I have consulted with the Attorney General of the Federation on the legal case and he confirms that he has consulted with all the State Attorney Generals and has their mandate to co-ordinate the response to this matter,” Adeosun wrote.

She added: “Your Excellency is also invited to note that further litigation threats have been received from Consultants engaged by the State Governments. These matters will equally be resolved by the Attorney General led process.”

Crucially, the minister made it clear that the payments were intended to permanently close the matter.

She recommended that the disbursement be treated as “full and final settlement of all claims relating to the Paris Club Loans,” adding that “no further correspondence relating to Paris Club Loans shall be entertained with any State.”

In the letter to Buhari, Adeosun said Nigeria’s economic conditions had improved compared to previous years, noting higher monthly FAAC allocations, stronger foreign reserves, and the country’s exit from recession.

She said these developments justified a cautious, phased approach to settling the Paris Club-related obligations, alongside a return to savings in the Excess Crude Account.

“This can be done concurrently with our resumption of savings into the Excess Crude Account (ECA),” she recommended. “I am therefore recommending that the repayment be phased over a maximum of six (6) months in tranches with attached conditions.”

President Buhari subsequently approved the payments on August 29, 2018, directing that the funds should be sourced from the Excess Crude Account.

Document

adeosun to buhari $350m linas 2018.pdf

SaharaReporters learnt that the payments came amid intense lobbying and legal disputes involving consultants who claimed fees for their roles in facilitating refunds to states and local governments.

Fresh $396m Request Under Tinubu

However, a new letter dated November 25, 2024, from Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), shows that the issue may be far from settled.

In the letter addressed to President Tinubu, the Attorney-General formally requested approval for the payment of $396,615,107.19 to Linas International Limited, a firm linked to Senator Nwoko.

“I write to respectfully draw Your Excellency’s kind attention to a letter dated 2nd July 2024 from the Chairman of the Nigeria Governors Forum (NGF) which made a case for the payment of outstanding balance of judgment debt in the sum of US$396,615,901 in favour of Linas International Ltd (“Linas”)/Senator Ned Nwoko,” Fagbemi wrote.

Document

fagbemi to tinubu $396m linas 2024.pdf

The request is based on a 2013 Federal High Court judgment which awarded over $3.1 billion to local governments, with 20 percent designated as consultancy fees to Linas.

According to the Attorney-General, “a part payment of US$241,000,000.00 was made in 2018 to Linas, thereby leaving an outstanding balance” of the current amount being requested.

Governors’ Position Reversed

The letter also reveals a significant shift in the stance of the Nigeria Governors’ Forum (NGF), which had previously opposed such payments and initiated legal action to stop them.

Fagbemi stated that the NGF has now reversed its position, noting that it “does not object to Senator Nwoko and Linas being paid the balance of their entitlements for work done.”

He further added that the governors had agreed to withdraw ongoing legal challenges and had executed a settlement agreement with the consultant.

Fagbemi’s letter, with reference number SGF/PS/CVJD/672/III, noted that the NGF had written to make “a case for the payment of outstanding balance of judgment debt” to Nwoko and his company.

To support the request, the Attorney-General cited multiple investigation reports by the Economic and Financial Crimes Commission (EFCC), claiming they validated the consultant’s role.

Fagbemi also referenced a separate consent judgment in favour of Senator Nwoko, noting that “promissory notes were issued to Sen. Nwoko in September 2021 based on a presidential approval granted in January 2021.”

He noted that the reports “consistently confirmed that Senator Nwoko/Linas were duly engaged directly by States and Local Governments, as against other consultants/claimants who were either engaged by NGF or ALGON, and that the duo took steps leading to the refunds made to the States and Local Governments.”

Despite these justifications, the renewed payment push contradicts the 2018 communication which framed the earlier disbursement as conclusive.

Fagbemi recommended that President should “approve the payment of the outstanding judgment debt sum of US$396,615,107.19 in favour of Linas International Limited”.

If approved, the Attorney-General proposed that the funds be sourced from state and local government allocations.

He recommended that President Tinubu should direct the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, to “deduct the outstanding judgment debt sum of US$396,615,107.19 from the FAAC allocations of the States/Local Governments who engaged the company or from other available sources as the HMF/CME may deem appropriate.”(SaharaReporters)