… As Delta Assembly approves Okowa’s request of N150bn credit facility***
The 36 State Governors have prayed to a Federal High Court in Abuja to restrain the Federal Government from approving the deduction of any money accruing to the states from the Federation Account for the payment of 418 million dollars judgment debt.
The Attorney-General of the 36 states made this prayer known in a motion on notice marked: FHC/ABJ/CS/1313/2021 dated and filed on March 28 before Justice Inyang Ekwo.
They prayed the court to restrain the respondents from proceeding with its judgment delivered on March 25 pending the hearing and determination of the appeal at the appellant court.
The application was brought pursuant to Order 32 Rule 1 and Order 56 Rule 8 of the Federal High Court Civil Procedure Rules 2019; Sections 120 and 162 of the 1999 Constitution (as amended) and under the inherent jurisdiction of the court.
The newsmen report that the 36 AGs had sued the president, Attorney-General of the Federation (AGF), Accountant-General of the Federation, Ministry of Finance and Central Bank of Nigeria (CBN).
Others are Debt Management Office (DMO), Federation Account Allocation Committee (FAAC), Incorporated Trustees of Association of Local Government of Nigeria (ALGON), Dr Chris Asoluka, Linas International Limited, among others.
According to the motion, 43 defendants are sued in the matter.
They prayed the court for an order of interim injunction, restraining the Federal Government from deducting monies accruing to the 36 states from the federation accounts.
The deductions are to settle 418 million dollars judgment debt in relation to the Paris Club Refund pending the determination of the substantive suit.
However, Justice Ekwo, on March 25, dismissed the suit for lacking in merit.
He held that the 36 states’ AGs, who were plaintiffs, lacked the legal right to institute the matter without their governors’ consent.
But in the motion on notice filed, the applicants sought for two orders.
The applicants, who listed 26 grounds why the court should grant their reliefs, said the lower court’s decision had been challenged at the Court of Appeal.
Part of the grounds are that “the applicants have the constitutional right to appeal the said decision, pursuant to Sections 36, 240 and 242 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
The appeal, they said, is pending before the Court of Appeal, Abuja Division, raises arguable, substantial and recondite grounds of appeal with a great chance of success.
The court, they added, has vires to grant the instant application to preserve the res and subject matter of the pending appeal.
Justice Ekwo fixed Wednesday for the hearing of the motion.
In the meantime, the Delta House of Assembly, on Tuesday approved a request by Gov. Ifeanyi Okowa for a bridging finance facility of N150 billion in favour of the state government.
The governor’s request is contained in a letter that was read at the plenary of the assembly by the Speaker, Chief Sheriff Oborevwori in Asaba.
Okowa said: the requested credit facility which has Zenith Bank PLC as the “lead arranger, would be principally tailored toward defraying arrears of unpaid certificates earned by contractors with respect to the completion of some critical ongoing legacy projects awarded by past and present administrations in the state.
The governor also said that part of the loan would be tailored toward taking care of outstanding pension commitments to the state and local government areas pensions in the contributory pension scheme, amounting to N20 billion and N10 billion respectively.
“The speaker and members of the state house of assembly, I wish to inform you that the state is expecting a refund from the Federal Government, being Petroleum Subsidy Payments made without recourse to the 13 per cent derivation due to oil-producing states from January 1999 to Nov. 30, 2021.
“Delta state’s portion in this regard amounted to N270.6 billion.
“Bearing in mind the administration’s resolve to finish strong, it is necessary for the state to capitalise on the refund to defray arrears of unpaid certificates earned by contractors with respect to the completion of some critical ongoing legacy projects awarded by past and present administrations,” the governor said.
Consequently, the motion for the approval of the credit facility was moved by the Majority leader of the assembly, Chief Ferguson Onwo.
The motion which was unanimously adopted by the house, assembly when put to a voice vote by the speaker, was seconded by the Chief Whip, Mrs. Pat Ajudua.