Nigeria’s Court of Appeal on Friday overturned a 38.88 billion naira ($25 million) judgment previously awarded to lawyer Joe Agi over consultancy fees linked to the Paris Club debt refund, ruling that the lower court lacked jurisdiction to hear the case.
In a unanimous decision, the appellate court set aside the 2022 judgment of the Federal High Court and nullified related garnishee proceedings initiated against the Central Bank of Nigeria (CBN) to enforce payment.
Agi had filed the suit in 2017 against the finance minister, the Nigeria Governors’ Forum and the attorneys-general of the 36 states, claiming entitlement to 20% of funds refunded to states under the Paris Club debt settlement arrangement.
The Federal High Court ruled in his favour in 2022, prompting appeals by the governors’ forum and state attorneys-general. Agi subsequently secured a garnishee order against the CBN, which was made absolute despite objections by the central bank.
The CBN and the states separately challenged the garnishee order.
In Friday’s ruling, the Court of Appeal held that debt recovery matters do not fall within the exclusive jurisdiction of the Federal High Court under Section 251 of Nigeria’s 1999 Constitution. It also found that Agi lacked the legal standing to institute the action.
The court allowed the appeals and declared the garnishee proceedings academic.
The CBN described the ruling as a significant legal victory, saying it removed a potential enforcement liability of more than 38.8 billion naira.
The decision ends years of litigation over consultancy claims arising from Nigeria’s Paris Club debt refunds to states.
