States workers’ salaries threatened, as court dismisses Governors’ Paris Club lawsuit

Justice Inyang Ekwo of the Federal High Court, Abuja, has ruled against the application of the 36 state governments to bar the Federal Government from deducting money from their coffers, a decision that put workers salary at risk.

The judge on Friday dismissed their suit, stating that it lacks merit, neither does it have locus standi to back their claim, stating that their lawsuit was an abuse of the court process.

The case was filed against the following defendants, Attorney-General of the Federation, Accountant-General of the Federation, Finance Ministry, the Central Bank of Nigeria (CBN), Debt Management Office (DMO), Incorporated Trustees of Association of Local Government of Nigeria, Federation Account Allocation Committee, and more.

Ripples Nigeria had reported that the state attorneys had filed the suit on behalf of the state government, following FG’s attempt to deduct $418 million from states’ accounts relating to the Paris Club debt.

The amount was for service offered by consultants involved in the $18 billion Paris Club Fund, which was written off by the International creditors, after a payment of $12 billion by the Federal Government in 2016.

READ ALSO: Malami, NGF in war of words over $418m Paris Club refund payment to consultants

With government planning to pay off the consultants that worked on the debt write off with states funds, the governors told the court according to NAN report that such action will affect their ability to pay salaries.

Although, the state governors had won an interim restraint against the FG on November 5, Justice Ekwo earlier, said he doesn’t see any merit in the case to restrict FG permanently.

During his judgement, he said Nigerian constitution bars arbitrary deduction, but it doesn’t prevent deduction based on contracts involving Nigerian government, which is carried out on behalf of states.

If the Federal Government eventually deducts the $418 million from states’ accounts, it will weigh heavily on the funds available to pay workers, as stated by counsel to the plaintiffs, Jibrin Okutekpa, SAN.

This comes at a period states like Kogi is still owing workers salary, according to the state branch of the Nigeria Labour Congress (NLC) in the state, while Kano slashed workers salaries, and many states are yet to implement the salary increment.

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