The federal high court sitting in Abuja has stopped the federal government from executing its plan to deduct $418 million from the bank account of the 36 states of the federation.
The court gave the ruling on Friday following an ex parte application brought by the counsels to the 36 states, Jibril Otukepa and Ahmed Raji.
In a ruling delivered by Inyang Ekwo, the judge , ordered FG to suspend the planned action pending the determination of the suit brought it by the governments of the 36 states.
Accoridng to Okutepa, FG had revealed the plan to deduct the $418 million from the accounts of states every month as part of debts for contracts allegedly executed for the states.
He, however, said that the 36 states’ attorneys-general have read the purported judgment displayed by the FG and found that the states were not parties to the court action which resulted in the judgment debt.
Defendants in the matter include President, the Attorney-General of the Federation, the Accountant-General of the Federation, and the Ministry of Finance.
Others were the Central Bank of Nigeria, the Debt Management Office, the Federal Account Allocation Committee, and various commercial banks in the country.
While adjourning the matter till November 30, Ekow ordered the plaintiffs to serve all the relevant court processes on the defendants.
