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Paris Club Refund: Court Enters N13.3bn Judgement Against Katsina Govt

Published

6 years ago

March 26, 2020

A Federal High Court in Abuja has ordered Katsina State Government to pay a firm, Mauritz Walton Nigerian Limited over N13.3billion for the debt management services it rendered to the state, which aided the refund of the $217,274,991.01 to Katsina by the Federal Government.
In a judgment Justice Inyang Ekwo, held that Mauritz Walton was able to establish, through credible evidence, that it was entitled to its claims as laid out in its suit filed and argued on its behalf by its legal team led by Wole Olanipekun (SAN).
Justice Ekwo said the N13,253,774,451.60 to be paid to Mauritz Walton, formed 20 per cent of the $217,274,991.01 refunded to Katsina State Government.
The judge ordered the state government to, in addition, pay the firm 20 per cent interest on the judgment sum to be calculated from October 1, 2018 until the day the judgment was given, and thereafter, at the rate of 10 per cent per annum until full and final payment.
The judgement was on a suit marked: FHC/ABJ/CS/1298/2017 by Mauritz Walton against the Minister of Finance, Central Bank of Nigeria (CBN), Accountant General of the Federation, Katsina State Government and its banker, the United Bank for Africa Plc.
Mauritz Walton claimed that it was appointed by Katsina State; by a letter dated August 18, 2014, with reference No: MOF/STAFF/409/1/31 to ascertain and recover the excess deductions by the Federal Government from its account to service its external debt between July, 1995 and March, 2002.
The firm stated that it was agreed between it and the Katsina State Government that it would be paid 20 per-cent of what was due to the state from the excess deduction, which is commonly referred to as the Paris Club refund.
Mauritz Walton’s Chief Executive Officer (CEO), Dr. Maurice Ibe stated, in his witness statement that, through his firm’s efforts, it was ascertained that Katsina State was entitled to $217,274,991.01 (estimated at N66,268,872,258.00 calculated at an exchange rate of $1 to N305) as Paris Club refund.
Ibe added that his firm’s efforts yielded further results when President Muhammadu Buhari, in 2016 directed the payment of the first tranche of the Paris Club refund to states, including Katsina.
He stated that, although almost all the amounts due to Katsina State had been paid into the state’s account, marked: 1019265062, in the United Bank for Africa (UBA), the state has refused and failed to pay his firm the 20 per cent fees agreed between parties.
Ibe further stated that despite the pendency of the suit and existing interim orders by the court, restraining further payment to Katsina, the 2nd defendant (Central Bank of Nigeria), on the instruction of the 1st defendant (Finance Minister) paid N35,364,610,435 to the 4th defendant (Kastina State), through the 5th defendant (UBA).
In his judgment, Justice Ekwo, said: “I find, by the evidence in this case, that the plaintiff has established the essential ingredients that must exist for a contractual relationship to be founded, that is; offer, acceptance, consideration, intention to create legal relationship and the capacity of the parties to enter into a contractual relationship by credible evidence which has not been successfully discredited by the defendants especially the 4th defendant.
“I hold therefore, that there was an agreement between the plaintiff and the 4th defendant for the payment of 20% commission charge of the recovered sum to the plaintiff by the 4th defendant.
“It is my finding also, that the defendants are ad idem (are in agreement) that the excess deductions have been fully paid to the 4th defendant and this was done during the subsistence of the debt management consultancy agreement between the 4th defendant and the plaintiff,” he said.
The judge faulted claims by the 1st, 2nd, 3rd and 5th defendants that they ought not to be joined in the suit on the grounds that they were not parties to the contract between the plaintiff and the 4th defendant (Katsina State).
“The 1st defendant (Minister of Finance) was duly informed and it actually acknowledged the receipt of notices of the appointment of the plaintiff as a debt management consultant of the 4th defendant.
“Since the 1st defendant has been so notified, it cannot claim not to know about the contract between the 4th defendant and the plaintiff on the debt recovery consultancy.
“The same applies to the 2nd and 3rd defendants (Central Bank of Nigeria and Accountant General of the Federation), who are agencies of the 1st defendants.
“The 1st, 2nd, 3rd, 4th and 5th (UBA) ought not to have taken steps that disturbed the res (subject of dispute) in this matter, especially when proceedings were on-going in this case and in the face of the orders of court to that effect.”
Justice Ekwo noted that it was strange that despite the presence of its lawyer throughout the duration of the proceedings, the Accountant General of the Federation did not file a defence in the case.
He held that: “The implication of a defendant failing to file a statement of defence in response to a statement of claim is well known in our jurisprudence. The law is that where there is no statement of defence filed in response to a statement of claim, the averments in the statement of claim are deemed as admitted.”
Justice Ekwo further held that: “Upon the evaluation of the relevant documentary evidence before this court, which evidence I have stated in the preceding pages of this judgement, I therefore have the requisite premise to hold that the case of the plaintiff has succeeded on the preponderance of evidence before this court.”
The judge proceeded to declare that the plaintiff was entitled to the 20 per cent of the $217,274,991.01 refunded to Katsina State Government by the Federal Government during the pendency of the contract between the 4th defendant and the plaintiff.
He ordered that the 4th defendant pays forthwith to the plaintiff the sum of N13,253,774,451:60 being its (the plaintiff’s) due remuneration for the consultancy services rendered by the plaintiff to the 4th defendant, leading to the recovery and release of 4th defendant’s said external debt excess debit refunds.
“The 4th defendant is hereby ordered to pay interest on the said sum of N13,253,774,451:60 at the rate of 20 per cent per annum from October 1, 2018 until judgment, and thereafter, at the rate of 10 per cent per annum until full and final payment,” the judge said.

Featured

Rivers Assembly Approves Fubara’s 2026–2028 MTEF

Published

2 days ago

June 29, 2026

The Tide

The Rivers State House of Assembly has approved the 2026–2028 Medium Term Expenditure Framework (MTEF) submitted by Governor Siminalayi Fubara.

This reaffirms the lawmakers’ commitment to enacting laws and taking legislative actions geared towards the overall development of the State.

The Assembly gave the approval during its Second Legislative Sitting of the Fourth Session held last Friday.

Speaking on the MTEF document during plenary, the House Speaker, Rt. Hon. Martin Amaewhule, noted that by the provision of Section 10(1)(b) of the Rivers State Fiscal Responsibility Law No. 8 of 2010, the MTEF ought to have been laid before the House in September 2025.

Amaewhule explained that traditionally, the document is expected to be presented four months before the commencement of the next financial year and immediately after the expiration of every three-year fiscal cycle.

He, however, stated that in the interest of the State and its people, the House considered it necessary to deliberate on the document, describing it as a precursor to the 2026 Budget Estimates.

The Speaker expressed concern that the year had already progressed significantly before the presentation of the framework.

During deliberations on the document, members examined the assumptions and projections contained in the MTEF and observed that strict adherence to the outlined fiscal parameters would ultimately serve the interest of Rivers people.

The lawmakers maintained that effective implementation of the framework would promote prudent financial management and enhance developmental planning across the State.

Following the debate and positive consideration by members, the Speaker put the question to the House and members voted overwhelmingly in support of the approval of the MTEF.

Meanwhile, during the same sitting last Friday, the House also received a petition from the Chairman of Obio/Akpor Local Government Council, Dr. Gift Worlu.

The petition was presented by the member representing Obio/Akpor Constituency II, Hon. Emilia Amadi.

According to the petition, concerns were raised over an imminent security breach, threats to lives, destruction of property and alleged forceful takeover of property by some lawless persons within parts of the Local Government Area.

Presenting the petition before the House, Hon. Amadi appealed to the lawmakers to revisit the matter and take necessary steps aimed at safeguarding lives and property in the affected communities.

The House is expected to further deliberate on the petition and consider measures to address the concerns raised in order to sustain peace and security in the area.

King Onunwor

News

Fubara Reaffirms Commitment To Blue Economy, Private Sector Growth …Calls For Protection Of Marine Resources

Published

2 days ago

June 29, 2026

The Tide

The Rivers State Government has reaffirmed its commitment towards fostering private sector-driven economic growth and harnessing the vast opportunities within the blue economy to drive national development.

Rivers State Governor, Sir Siminalayi Fubara, made this known during the opening ceremony of the 2026 Annual General Meeting and Conference of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), held in Port Harcourt, last Thursday.

Represented by his deputy, Prof. Ngozi Odu, Governor Fubara described the conference theme, “The Gulf of Guinea and Blue Economy: Pathways to Trade, Investment and Security Towards a $1 Trillion Economy,” as both timely and strategic.

?The governor welcomed the leadership of NACCIMA, delegates from the 115 Chambers of Commerce across Nigeria, members of the diplomatic corps, captains of industry, investors, and other distinguished guests to Rivers State.

?He commended the National President of NACCIMA, Engr. Jani Ibrahim, for choosing Rivers State as the host of the 2026 conference, noting that the decision had drawn national attention to the immense economic opportunities embedded in the blue economy.

?Fubara stated that the blue economy possesses the capacity to generate revenue that could surpass earnings from the oil and gas sector if properly developed and managed.

?He stressed the need for Nigeria and other countries along the Gulf of Guinea to take deliberate steps toward maximizing the benefits of their maritime resources while guarding against the continued exploitation of coastal assets by foreign operators.

?Expressing concern over the activities of foreign fishing trawlers operating in Nigerian waters, the governor noted that many harvest seafood resources without making meaningful economic contributions to the country.

?He emphasized the need for stronger monitoring mechanisms and enhanced protection of Nigeria’s marine resources.

?”We must wake up and hit the ground running. If we do not capitalize on and utilize our blue economy, other nations will utilize it for us,” he stated.

?The governor thanked NACCIMA for what he described as a timely wake-up call on the importance of the blue economy and maritime security, adding that the successful hosting of the conference in Rivers State demonstrates the state’s safety, hospitality, and readiness for business and investment.

?Earlier in his remarks, the President of NACCIMA, Engr. Jani Ibrahim, expressed appreciation to the Rivers State Government for hosting the 66th Annual General Conference of the Association and for the warm reception accorded delegates.

?He noted that the state’s commitment to hosting the conference reflects its readiness for business and has helped restore investors’ confidence in its economic potential.

?According to him, NACCIMA highly values the cordial relationship between the Rivers State Government and the organized private sector, emphasizing that the association remains the foremost voice of the Nigerian business community.

?In her welcome address, the President of the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), Dr. Chinyere Nwoga, described the conference as a historic milestone, noting that it was the first time in the Chamber’s 66-year history that it was hosting the national body of NACCIMA.

Nwoga commended the national leadership for entrusting PHCCIMA with the hosting rights and pledged the Chamber’s continued commitment to advancing the objectives of the association and promoting sustainable economic growth through private sector engagement.

News

Fubara Seals Off Collapsed Building Site, Orders Investigation

Published

2 days ago

June 29, 2026

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has ordered a complete seal-off of the site of a five-storey building which collapsed last Wednesday, killing one person and injuring several others in Port Harcourt.

Fubara gave the order during his visit to the site of the collapsed building last Thursday to assess the situation.

He said the site will remain “completely sealed off” until the government gets to the “root cause” of the incident.

He described the incident as unfortunate but observed that preliminary investigation had shown that the developer had earlier refused to subject his site to inspection by the state authorities and comply with the necessary building regulations.

The governor, who inspected the site alongside the Commissioner for Physical Planning and Urban Development, Sir Amairigha Edward Hart, and the Permanent Secretary of the Ministry of Special Duties, Dabite Sokari George, explained that he couldn’t visit the site the previous day because he was awaiting formal briefing from the relevant agency of government on the situation.

“We’re here to see for ourselves the very unfortunate incident that took place here. I didn’t come yesterday because I wanted to get the report first, and the Commissioner did brief me that the incident site, first, is not as claimed by the developer, that it’s not under the jurisdiction of the state; that it’s under the jurisdiction of the Federal Housing Authority.

“He also informed me that when the project was ongoing, they came here severally to inspect what was happening and also to see the level of compliance. But unfortunately, that the developer kept claiming that we don’t have any right to interfere,” he said.

Fubara said that the issue was no longer about interference but about the life lost to the building collapse and the collateral damage brought upon the family of the deceased.

He extended condolences to the families of the victims, insisting that the incident could have been avoided if the developer had complied with the rules guiding the engineering design and construction of such a structure in the 21st century.

“We feel very sorry and very regretful that such an incident should be happening in this 21st century because technology has advanced, engineering has developed. I wonder what kind of engineer would even allow this kind of project to go on when everything about it from inception has been faulty.

“I think that at this point, nothing is going to happen on this site any more. We are going to make sure that this place is completely sealed off until we get to the root cause of this incident,” the governor said.