Riok Nigeria Limited v. Incorporated Trustees Of Nigerian Governors’ Forum & Ors (2022)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

AGIM, J.S.C. (Delivering the Leading Judgment)

Because the Federal Government of Nigeria used monies in the Federation Account to service its foreign debts, namely, London and Paris Club Debts) between 1992 and 2006 without the authorization of the States Government and Local Governments and Area Councils, who with the Federal Government are joint owners of money in the Federation Account by virtue of S. 162(3)(4) and of theConstitution of the Federal Republic of Nigeria 1999, One LinasInternational Limited (a private limited liability company) and theIncorporated Trustees of Association of Local Governments of Nigeria, together with 234 Local Governments as representativesof all the Local Governments and Area Councils in Nigeria Commenced suit No. FHC/ABJ/CS/BO/13 on 11-6-2013 in the Federal High Court against the Federal Government of Nigeria tosecure the refund to all the Local Governments their share of themonies in the Federation Account unilaterally used by the FederalGovernment to service its said foreign debts. After considering theaffidavit evidence of all parties and their written final addressesthe trial court on 3-12-2013 rendered its judgment granting theplaintiffs the following reliefs-

“1. A declaration is made that the defendants utilizationof monies that form part of the Federation Accountfor London Club Debt Buy Back in 1992 and 2002;and London Club Debt Exit Payment in 2006 withoutthe authorization of the other tiers of Governmentincluding the Local Government Councils and AreaCouncils of Nigeria is contrary to Section 162(1),of the Constitution of the Federal Republic of(3)Nigeria 1999 (as amended).

2. A declaration is made that the defendants utilizationof monies that form part of the Federation Accountfor London Club Debt Buy Back in 1992 and 2002;and London Club Debt Exit Payment in 2006 withoutthe authorization of the other tiers of Governmentincluding the Local Government Councils and AreaCouncils of Nigeria is contrary to section 162(1),of the Constitution of the Federal Republic of(3)Nigeria 1999 (as amended).

3. A declaration is made that the Local GovernmentCouncils and Area Councils in Nigeria are entitled to the sum of $2,624,812,616.76 being their share of thesum utilized by the defendants for debt, services byway of first line charges between June 1996 – March,2002.

4.An order of court is made mandating the defendantsto pay to the Local Government Councils and AreaCouncils of Nigeria the sum of $563,266,889.20 beingtheir share of the sums utilized by the defendants forLondon Club Debt Buy Back in 1992 and 2002; andLondon Club Debt Exit Payment in 2006.

5.A declaration is made that the plaintiffs are entitled tothe payment of the sum of $3,188,079,505.96 (ThreeBillion, One Hundred and Eighty Eight Million,Seventy-Nine Thousand, Five Hundred and Five USD,Ninety-Six Cents) from the defendants.

6.The defendants are hereby ordered as follows:

a) To pay the sum of $3,188,078,505.96 to theplaintiffs.

b) To deduct at source 20% of the judgmentsum and pay same to the 1st plaintiff throughits Solicitors, Joe Agi, SAN into Skye BankPlc – Sort Code 076151019 – Account No.1060003931 being the agreed consultancy feesof the 1st plaintiff for its services to the otherplaintiffs.

c) To also deduct at source another 15% of thejudgment sum for utilization on securityand health care delivery all over the FederalRepublic of Nigeria, 10% of which shall beutilized for the provision of mobile Health CareSystem in the 774 Local Government Councilsin Nigeria pursuant to the award of contract bythe plaintiffs to WELLS PROCUREMENTSERVICES LIMITED”.

The said judgment was executed by a garnishee order absoluteissued by the trial court on 29-6-2016 at the instance of the judgmentcreditors against the Central Bank of Nigeria as garnishee. Theorder reads thusly –

“It is hereby ordered as follows:

1.That all the applications for 3rd partiesapplicants are hereby struck out.