A federal high court in Abuja on Friday stopped the Federal government from deducting $418 million from the bank accounts of the 36 states.
Justice Inyang Ekwo in a ruling ordered the federal government to suspend the planned action, pending the determination of a suit brought before it by governments of the 36 states.
The controversial payment of $418 million to consultants over the Paris Club refund had become a contending issue between the three tiers of government.
Consultants had claimed the amount as a percentage for the payment of services rendered to the states and local government councils. But the amount did not go down well with the governors who requested a forensic audit over the claim made by consultants.
Ekiti State Governor and Chairman of Governors Forum Kayode Fayemi had.last week said they would not accept arbitrary deductions of funds by the federal government.
The legal team of the governors led by
Jibrin Okutepa told the court that the states would be completely crippled if the the federal government should deduct the money from their bank accounts, as part of debts for contracts allegedly executed for the states.
After listening to the arguments of the 36 states, Ekwo retrained the federal government from deducting from the states in respect of the purported court judgment until all issues relating to it were fully determined.
The matter has been adjuned till November 30.
The judge ordered the plaintiffs to serve all the relevant court processes on the defendants.
