The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has stated that the Ministry has made significant progress in saving Nigeria from “huge debt liabilities.”
He disclosed this on Tuesday, August 27, 2024, during the ongoing Nigeria Bar Association Conference in Lagos State, where he participated in a discussion on justice sector reforms.
During the meeting, he highlighted some of the reforms the Justice Ministry is implementing to reposition the justice sector, promote respect for the rule of law, and ensure effective administration of justice.
Nigeria’s Debt Service
Nairametrics previously reported on July 22, 2024, that debt service costs consumed about 74% of the federal government’s retained revenue in the first quarter of 2024.
This information is according to the quarterly statistical bulletin from the Central Bank of Nigeria (CBN).
In Q1 2024, the federal government had a retained revenue of N1.76 trillion.
However, during the same period, debt servicing consumed N1.31 trillion, which is about 74% of the government’s revenue.
This figure highlights the continuing financial strain on the government’s resources as it grapples with significant debt obligations.
What the AGF is Saying
While not detailing all the progress made in saving the country from debt, Fagbemi mentioned that the Ministry is also developing an appeal policy for public sector institutions.
This policy aims to enhance their ability to pursue appeals against court decisions with which they are dissatisfied, rather than acting with impunity.
Nairametrics recalls the landmark decision in an arbitration case instituted against Nigeria by Process and Industrial Development Limited (P&ID). In this case, a UK commercial court set aside an arbitral award of over $11 billion, which had been granted against the Nigerian government in the United Kingdom for breach of a gas supply and processing agreement.
The Office of the AGF played a central role in this case.
Fagbemi explained that the appeal policy is part of a deliberate strategy to tackle the issue of rising judgment debts against the Federal Government and its Ministries and Agencies.
“Using a combination of effective defense strategies and diligent prosecution of appeal cases, the Ministry has made some progress in saving the country from huge debt liabilities,” he added.
The AGF stressed that both public and private lawyers are partners in efforts to reform the justice sector.
“While the government is open to criticism, I would admonish that such constructive criticism also comes with attendant recommendations or suggestions on how best to improve justice delivery for the benefit of our citizens,” he added.
More Insights
- Data from the CBN revealed that debt service payments have been steadily rising over the past few years. In Q1 2023, debt servicing stood at $801.36 million, but in Q1 2024, it increased by 39.7% to $1.12 billion.
- Nairametrics further observed that Nigeria spent about 70% of its dollar payments to service external debts between January and March 2024. According to data from the CBN, out of the $1.61 billion in total outflows made during this period, a substantial amount of $1.12 billion was directed towards servicing external debt.
- Debts can be awarded, quashed or incurred through litigation, and this is where the AGF plays a crucial role.
- The Federal Ministry of Justice is the legal arm of the Federal Government of Nigeria, primarily concerned with initiating lawsuits on the government’s behalf.
- The AGF, as the chief law officer of the federation, also plays a significant role in reviewing and implementing policies.
- The office of the FMOJ is connected to virtually all federal government ministries and agencies, especially in matters of laws, rules, and regulations.
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