The Court of Appeal, Abuja Division, has set aside a ₦38.88 billion judgment earlier entered against the Central Bank of Nigeria (CBN) in a long-running dispute over consultancy fees linked to the Paris Club Refund.
In a unanimous decision delivered on Friday, February 20, 2026, the appellate court held that the Federal High Court lacked jurisdiction to entertain the matter, ruling that debt recovery does not fall within the exclusive jurisdiction conferred on the lower court under Section 251 of the 1999 Constitution (as amended).
The court further held that Mr. Joe Agi, SAN, who instituted the suit, lacked the requisite legal standing (locus standi) to bring the action. On that basis, the appellate court allowed the appeal and dismissed the judgment.
With Friday’s ruling, the Court of Appeal nullified both the substantive judgment and the enforcement orders, effectively freeing the CBN from liability exceeding ₦38.8 billion.
Counsel to the apex bank, Prof. Fabian Ajogwu, SAN, of Kenna Partners, and O.M. Atoyebi, SAN, described the decision as a significant legal victory that restores clarity on jurisdictional limits and shields the bank from what they termed an improper enforcement action.
The ruling marks a major turning point in the protracted Paris Club Refund litigation and underscores the importance of jurisdiction and locus standi in high-stakes constitutional and financial disputes.
Background to the Dispute
The case originated from a 2017 suit filed by Mr. Agi against the Minister of Finance, the Incorporated Trustees of the Nigeria Governors’ Forum, and the Attorneys-General of the 36 states, seeking 20 per cent of the Paris Club Refund as consultancy fees.
In 2022, the Federal High Court entered judgment in his favour in the sum of ₦38,878,451,742.22. The ruling triggered appeals by the Nigeria Governors’ Forum and the Attorneys-General of the 36 states.
Following the judgment, Agi commenced enforcement proceedings through garnishee actions and secured a Garnishee Order Nisi against the CBN. Despite objections raised by the apex bank, the Federal High Court made the order absolute on October 18, 2022, prompting the CBN and the state Attorneys-General to challenge the decision at the appellate court.
