Rights group urges Nigeria to pay businessman Ned Nwoko, others $418 million for debt assistance
The civil rights group National Fresh Vision (NFV) has urged the government to pay six local law firms that facilitated refunds to Nigeria from the Paris and London clubs.
The Paris Club is an informal group of creditor nations, whose objective is to find workable solutions to payment problems faced by countries in serious debt.
Similarly, the London Club is an informal group of private creditors on the international stage.
The two clubs are internationally renowned global lenders.
The law firms funded debt refund negotiations with the clubs on Nigeria’s behalf, and are now demanding payment. Typically, brokers receive a set percentage from debt refunds.
Initially, Nigerian President Muhamadu Bahari approved the $418 million in legal consultancy fees owed to the law firms, including Linas International Limited run by multimillionaire businessman and lawyer Ned Nwoko.
The approval came upon the recommendation of Finance, Budget and National Planning Minister Zainab Ahmed.
Despite pending litigation, the president’s approval signaled the Debt Management Office to issue promissory notes to the contractors and consultants related to the refunds.
However, the Nigeria Governors Forum and the Association of Local Governments of Nigeria (ALGON) spoke out against the move. They asked the banks not to proceed with the payment as directed by the minister.
The governors insist on a forensic audit to ascertain the actual amount involved and the contract terms.
The rights group said: “Had the debt refund negotiations failed, Prince Ned Nwoko’s Linas International Limited would have borne huge personal losses.” It insists that the state bodies allow the government to pay its debt.
A brief background
In 2008, ALGON contracted Nwoko’s Linas International to secure the payment of Paris Club refunds for local governments, which was executed.
According to Sahara Reporters, a number of state governors later contracted the law firms again for a similar purpose. Both parties agreed to pay about 20 percent of the recovered funds as a consultancy fee.
The purported amounts claimed by the consultants include Nwoko — $142 million, Ted Iseghoghi Edwards — $159 million, Riok Nigeria Limited, Orji Nwafor Orizu and Olaitan Bello – $142 million and Panic Alert System Limited and George Uboh – $47.8 million.