The Court of Appeal in Abuja on Friday overturned a N38,878,451,742.22 judgment previously awarded by a Federal High Court to Mr. Joe Agi, SAN, over alleged consultancy fees linked to the Paris Club Refund.
In a unanimous ruling, the appellate court ruled that the Federal High Court lacked jurisdiction to hear the matter, nullifying both the original judgment and the garnishee proceedings aimed at enforcing it against the Central Bank of Nigeria.
Mr. Agi had filed the suit in 2017 against the Honourable Minister of Finance, the Incorporated Trustees of the Nigeria Governors’ Forum, and the Attorneys-General of the 36 states, claiming entitlement to 20 per cent of the Paris Club Refund as consultancy fees.
A judgment in his favour was delivered in 2022, prompting appeals from the Nigeria Governors’ Forum and the Attorneys-General of the 36 states.
Following the 2022 judgment, Mr. Agi initiated garnishee proceedings and obtained a Garnishee Order Nisi against the CBN.
Despite objections by the apex bank, the Federal High Court, on October 18, 2022, made the order absolute.
Dissatisfied, the CBN and the Attorneys-General of the 36 states filed separate appeals contesting the garnishee order.
Delivering its judgment on Friday, the Court of Appeal held that “debt recovery matters fall outside the exclusive jurisdiction of the Federal High Court as provided under Section 251 of the 1999 Constitution (as amended).”
The court also noted that Mr. Agi “lacked the requisite locus standi to institute the action.”
As a result, the appellate court allowed the substantive appeals and ruled that the related garnishee appeals, including the one filed on behalf of the CBN by Prof. Fabian Ajogwu, SAN, and O. Atoyebi, SAN, “had become academic.”
Reacting to the outcome, the CBN hierarchy described the decision as “a significant legal victory,” emphasizing that it “relieves the bank of an enforcement liability exceeding N38.8 billion.”
The ruling effectively closes a long-running legal saga over consultancy claims arising from the Paris Club Refund.
