A new controversy has surfaced over Nigeria’s Paris Club refunds following a proposed $396 million payment in favour of Ned Nwoko and his firm, Linas International Limited, years after earlier payments were described as final.
Nwoko had served as lead consultant for Nigerian states and local governments in securing the Paris Club loan refunds, estimated at about $13 billion. His firm was engaged to recover funds over-deducted by the federal government between 1995 and 2002. While Nwoko maintains that his firm is still owed about $68 million, the Nigeria Governors’ Forum (NGF) had previously disputed larger claims, describing them as contentious.
The renewed debate stems from apparent contradictions between decisions taken under former President Muhammadu Buhari and a fresh request under the administration of Bola Tinubu. In 2018, then Minister of Finance, Kemi Adeosun, recommended that payments to consultants be treated as a “full and final settlement,” a position subsequently approved by Buhari.
However, a 2024 letter from the Attorney-General of the Federation, Lateef Fagbemi, indicates that the matter may not have been fully resolved. The letter requested approval for the payment of $396.6 million as an outstanding balance linked to a prior court judgment involving Linas International.
According to the Attorney-General, part payments had already been made in 2018, leaving the current balance. He also revealed that the Nigeria Governors’ Forum, which had earlier opposed such payments, has now reversed its stance and agreed to a settlement.
The request is reportedly backed by findings from the Economic and Financial Crimes Commission, which affirmed that Linas was duly engaged and played a role in facilitating the refunds.
Despite these justifications, the development has raised fresh concerns about transparency, possible duplication of payments, and the integrity of earlier “final settlement” claims. If approved, the funds may be deducted from allocations to states and local governments, further intensifying debate over the financial and legal implications of the decision.