The court of appeal sitting in Abuja has set aside a N38.9 billion judgement previously awarded against the Central Bank of Nigeria (CBN) in a long-running dispute over consultancy fees linked to the Paris Club refund.
In a unanimous decision delivered on February 20, the appellate court overturned the earlier ruling of the federal high court, which had entered judgement in favour of Joe Agi, a senior advocate of Nigeria (SAN).
Agi instituted the suit in 2017 against the minister of finance, the Incorporated Trustees of the Nigeria Governors’ Forum, and the attorneys-general of the 36 states.
He claimed entitlement to 20 percent of the Paris Club refund as consultancy fees.
The court ruled in his favour in 2022, prompting appeals by the Nigeria Governors’ Forum (NGF) and the state attorneys-general.
Following the judgement, Agi commenced garnishee proceedings to enforce the award and obtained a garnishee order nisi against the CBN.
Despite objections from the apex bank, the lower court made the order absolute on October 18, 2022.
The CBN and the 36 state attorneys-general subsequently appealed both the substantive judgement and the garnishee proceedings.
Delivering its judgement, the court of appeal held that the federal high court lacked jurisdiction to entertain the matter.
The court ruled that the claim, being in the nature of debt recovery, did not fall within the exclusive jurisdiction of the federal high court as stipulated under section 251 of the 1999 Constitution (as amended).
The appellate court further held that Agi lacked the requisite locus standi to institute the action.
Having resolved the jurisdictional issue, the court allowed the substantive appeals and declared the related garnishee appeals academic.
The ruling effectively nullified the enforcement proceedings against the CBN and relieved the bank of liability exceeding N38.8 billion.