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Judiciary

Paris Club Refund: Appeal Court Quashes N38.8bn Judgement Against CBN

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The Court of Appeal, Abuja Division, on Friday, February 20, set aside and dismissed a landmark ₦38,878,451,742.22 judgment earlier entered by the Federal High Court in favour of Mr Joe Agi, SAN, over alleged consultancy fees arising from the Paris Club Refund.

The suit, originally filed in 2017 by Joe Agi, SAN, against the Honourable Minister of Finance, the Incorporated Trustees of the Nigeria Governors’ Forum, and the Attorneys-General of the 36 States, claimed 20% of the Paris Club Refund as consultancy fees.

Judgment was entered in 2022, prompting appeals by the Nigeria Governors’ Forum and the Attorneys-General of the 36 States.

Following the judgment, Joe Agi, SAN, moved swiftly to enforce the judgment through garnishee proceedings, securing a Garnishee Order Nisi against the Central Bank of Nigeria (CBN).

Despite objections by the CBN, the Federal High Court proceeded to make the order absolute on October 18, 2022, prompting the CBN and the Attorneys-General of the 36 States to file appeals in respect of the garnishee proceedings.

In a unanimous decision delivered on Friday, February 20, 2026, the Appellate Court held that the Federal High Court lacked the jurisdiction to entertain the suit, holding that debt recovery falls outside the exclusive jurisdiction granted to the Lower Court, the Federal High Court, as provided under Section 251 of the 1999 Constitution of the Federal Republic of Nigeria, as amended.

The Court further held that the Appellant, Mr Agi, SAN, lacked the legal standing (locus standi) to institute the action.

The Court consequently allowed the substantive appeals and held that the related garnishee appeals arising from the main appeal filed on behalf of the CBN by Prof Fabian Ajogwu, SAN and O.M. Atoyebi, SAN, were academic.

The CBN hierarchy has welcomed the decision, describing it as a significant legal victory that relieves the Bank of an enforcement liability exceeding ₦38.8 billion.

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Funsho Arogundade

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