The Association of Local Governments of Nigeria (ALGON) and 702 local government councils have asked the Federal High Court in Abuja to dismiss a suit filed by Senior Advocate of Nigeria (SAN), Joe Agi, seeking $159 million in legal fees over the Paris Club refund, insisting they never engaged him to represent them in the case.
In a joint counter-affidavit filed before Justice James Omotosho, the councils argued that neither ALGON nor the affected local governments directly engaged Agi to represent them in the litigation that led to the recovery of funds deducted under the Paris Club debt buy-back arrangement.
Agi Challenges Promissory Notes
Agi had filed the suit, marked FHC/ABJ/CS/653/2026, asking the court to invalidate the issuance of promissory notes worth $159 million in favour of another lawyer, Dr. Ted Edwards.
He also sought an order setting aside a 2015 judgment of the FCT High Court, which he alleged was obtained through fraud and misrepresentation. In addition, he asked the court to direct the Federal Government to reissue the outstanding promissory notes in his name and pay him the value of those already due.
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The defendants include the Federal Government, the Attorney-General of the Federation, the Minister of Finance, the Director-General of the Debt Management Office, the Accountant-General of the Federation, Dr. Ted Edwards and the Incorporated Trustees of ALGON.
Agi maintained that he was engaged by Linas International Limited and ALGON to prosecute the case challenging deductions from local government allocations under the Paris Club debt buy-back arrangement.
He said that after obtaining judgment and securing garnishee proceedings to recover the funds, ALGON agreed to pay him 10 per cent of the recovered amount as professional fees.
He further alleged that government officials wrongly issued 10 annual promissory notes worth $15.9 million each to Edwards, whom he insisted was not counsel to ALGON in the substantive suit.
Edwards Rejects Claim
Edwards, however, denied Agi’s claims, saying he was independently engaged by ALGON’s Board of Trustees to provide legal consultancy and management services on the Paris Club debt recovery.
He argued that Agi acted only as counsel to Linas International Limited and that any legal fees owed to him should be paid by the consultant, not the local governments.
Edwards also said he had already secured a judgment against ALGON for his legal fees, which was enforced through garnishee proceedings, adding that ALGON issued him a letter of no objection to facilitate payment.
He further claimed that Agi had previously acted as his lawyer in attempts to recover the same legal fees, making the present suit inconsistent with his earlier position.
ALGON Denies Retaining Both Lawyers
In the counter-affidavit deposed to by its National President, Bello Lawal, ALGON rejected the claims of both lawyers, insisting that the disputed funds belong solely to the local governments.
Lawal said neither Agi nor Edwards was directly retained by ALGON or the 702 councils, adding that the documents relied on by both lawyers did not establish any contractual relationship with the association or the councils.
He argued that the original judgment directed the payment of consultancy fees to Linas International Limited through Agi as its solicitor and that any dispute over legal fees should be resolved between Agi and the consultant.
Lawal also pointed out that Agi had previously sued Linas International Limited over legal fees and admitted in that case that he acted as the consultant’s lawyer, a position he said contradicts the current claim.
He urged the court to dismiss the suit, arguing that neither the Federal Government nor its agencies has the constitutional authority to disburse local government funds without the approval of the councils, which he described as the rightful owners of the money.
At the resumed hearing, counsel for the Minister of Finance informed the court that the Attorney-General of the Federation had directed lawyers representing the Federal Government to amend their processes.
Counsel to Edwards also told the court that fresh court documents had been served on his client and requested time to respond.
Justice James Omotosho subsequently adjourned the matter until September 30 for hearing.
Rafiyat Sadiq is a political, justice, and human rights reporter with Pinnacle Daily, known for fearless reporting and impactful storytelling. At Pinnacle Daily, she brings clarity and depth to issues shaping governance, democracy, and the protection of citizens’ rights.