Appeal Court Sets Aside N38.8bn Paris Club Refund Judgment Against CBN

The Court of Appeal sitting in Abuja has nullified a N38.878 billion judgment that had been awarded against the Central Bank of Nigeria (CBN) in a longstanding dispute over consultancy fees related to the Paris Club refund.

In a unanimous ruling delivered on February 20, the appellate court overturned the earlier judgment of the Federal High Court, which had ruled in favour of Joe Agi, a Senior Advocate of Nigeria (SAN).

Agi had filed the suit in 2017 against the Minister of Finance, the Incorporated Trustees of the Nigeria Governors’ Forum (NGF), and the Attorneys-General of the 36 states, claiming entitlement to 20 percent of the Paris Club refund as consultancy fees.

Following the 2022 Federal High Court judgment in his favour, Agi moved to enforce the award through garnishee proceedings, obtaining an order nisi against the CBN. Despite objections from the apex bank, the lower court made the order absolute in October 2022.

The CBN, together with the 36 state Attorneys-General, appealed both the substantive judgment and the garnishee proceedings.

Delivering the judgment, the Court of Appeal held that the Federal High Court lacked jurisdiction to entertain the matter. The court stated that the claim, which was essentially a debt recovery, did not fall under the exclusive jurisdiction of the Federal High Court as outlined in Section 251 of the 1999 Constitution (as amended).

The appellate court also ruled that Agi lacked the necessary locus standi to institute the action.

With the jurisdictional question resolved, the court allowed the substantive appeals, declaring the related garnishee proceedings academic. The ruling effectively nullifies enforcement against the CBN, relieving the bank of any liability exceeding N38.8 billion.