The Association of Local Governments of Nigeria and 702 local government areas have asked the Federal High Court in Abuja to dismiss a suit filed by senior lawyer Joe Agi, SAN, seeking payment of $159 million as legal fees arising from the London and Paris Club debt buy-back refund.
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ALGON and the councils also urged the court to reject the claims of another lawyer, Dr Ted Edwards, regarding his alleged engagement and entitlement to professional fees from the association.
Their position was contained in a joint counter-affidavit filed through their lawyer, Donald Ayibiowu, before Justice James Omotosho.
Agi instituted the suit marked FHC/ABJ/CS/653/2026 against 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, Edwards and the Incorporated Trustees of ALGON, sued for itself and on behalf of Nigeria’s 774 local government councils.
The senior lawyer is asking the court to declare that the judgment delivered by an Abuja High Court on October 30, 2015, in Motion No. M/1545/15 in favour of Edwards against ALGON was allegedly obtained through fraud and misrepresentation.
Agi contended that the judgment subsequently misled the relevant federal authorities into exercising their executive and administrative powers in favour of Edwards and to his detriment.
He also sought a declaration that the Federal Government, Minister of Finance, DMO and Accountant-General were wrongly influenced into issuing promissory notes worth $159 million to Edwards, whom he claimed was not ALGON’s lawyer in Suit No. FHC/ABJ/CS/130/2013 and was therefore not entitled to the legal fees.
Agi consequently asked Justice Omotosho to set aside the October 30, 2015 judgment for being a nullity from the outset.
He further sought an order cancelling or invalidating the 10 promissory notes issued in favour of Edwards in annual tranches of $15.9 million over 10 years.
The lawyer asked the court to compel the relevant federal authorities to redeem four promissory notes valued at $63.6 million, which he said had fallen due, and pay the money to him.
He also requested an order directing the authorities to reissue the remaining six promissory notes in his name while retaining their original payment dates.
In his supporting affidavit, Agi claimed that Linas International Limited and ALGON engaged him to pursue the recovery of money allegedly deducted unlawfully from local government allocations in connection with the London and Paris Club debt buy-back.
He said Justice A.F.A. Ademola entered judgment in the case on December 3, 2013, and that ALGON agreed to pay him 10 per cent of the amount awarded.
Agi said he later commenced garnishee proceedings, during which the court made a garnishee order nisi for the payment of $3.188 billion.
According to him, ALGON wrote letters dated February 11 and 17, 2016, alleging that Edwards was not its lawyer and had obtained his judgment through fraud.
Agi further claimed that Edwards’ request for legal fees was dismissed in a ruling delivered by Justice Ademola on June 27, 2016.
He alleged that, despite this, federal officials subsequently entered into discussions with Edwards and recommended the payment of $159 million to him in a letter dated December 23, 2019.
Agi maintained that he was the lawyer who conducted the substantive case and was therefore entitled to the legal fees represented by the promissory notes.
He said he wrote to the Minister of Finance and the Attorney-General of the Federation, asking them to reissue the notes in his name.
Edwards, however, opposed Agi’s claims and told the court that the ALGON Board of Trustees engaged him to provide legal consultancy and management services in connection with the debt refund.
He said his appointment was initially made by the association’s chairman and subsequently ratified and expanded by the full board.
According to Edwards, ALGON had already appointed Linas International Limited as a consultant to calculate and recover the funds deducted from local government allocations, while Linas engaged Agi to institute the recovery action.
Edwards argued that Agi’s professional fees were included in the consultancy fees payable to Linas International and should therefore be paid by the company rather than the local governments.
He maintained that his engagement by ALGON was separate from the brief given to Linas and Agi.
Edwards said he was instructed to work with the consultant and ensure that recovered funds were not dissipated by ALGON’s management.
He also claimed that he engaged Ikechukwu Ezechukwu, SAN, to assist him, with the knowledge of ALGON, and that the association subsequently issued a letter of no objection to the payment of his fees.
Edwards said he sued ALGON on behalf of the 774 local governments after his fees were not paid and obtained judgment and a garnishee order absolute against the Central Bank of Nigeria.
He said he later sought to register that judgment in the garnishee proceedings connected with the recovery suit being conducted by Agi.
According to Edwards, the application was rejected because the Federal High Court could not enforce or sit on appeal over the judgment of the Abuja High Court.
He further alleged that Agi knew ALGON did not directly brief him and had previously acted as Edwards’ lawyer in efforts to recover the disputed fees.
Edwards referred to a January 3, 2017 letter allegedly written by Agi to the Attorney-General of the Federation on his behalf.
He claimed that Agi’s representation of both him and Linas International in the recovery process caused the consultancy company to terminate Agi’s services.
In their counter-affidavit, ALGON and the 702 local governments asked the court to dismiss the suit in its entirety.
The affidavit was deposed to by ALGON’s National President and Chairman of Kaita Local Government Area of Katsina State, Bello Lawal.
Lawal said ALGON and the councils had a direct and fundamental interest in the funds that Agi and Edwards were seeking to claim as professional fees.
He described the local governments as the principals and owners of the money allegedly being contested by the two lawyers.
Lawal denied that ALGON or the councils directly engaged either Agi or Edwards to provide the services for which they were claiming payment.
He argued that documents allegedly obtained from some ALGON officials were not issued before the commencement of Suit No. FHC/ABJ/CS/130/2013 and were not intended to confer contractual rights on either lawyer.
According to him, ALGON had engaged Linas International Limited to carry out the recovery work for which Agi was now claiming a direct brief from the councils.
Lawal said Justice Ademola’s judgment provided for the deduction of 20 per cent of the judgment sum as consultancy fees payable to Linas International through its solicitor, Agi.
He alleged that Agi later became involved in a dispute with Linas International over his professional fees and filed Suit No. FHC/ABJ/CS/1193/2017, in which he acknowledged that the company had engaged him while serving as consultant to the local governments.
Lawal maintained that neither Agi nor Edwards had ALGON’s consent to deal with or assert proprietary rights over funds belonging to the councils.
He further argued that the Federal Government and the relevant agencies lacked the constitutional authority to pay out funds belonging to local governments without their express authorisation.
The case was initially scheduled for the adoption of processes, but counsel for the Minister of Finance, Oluwafemi Korisade, informed the court that the Attorney-General of the Federation had directed lawyers representing the Federal Government and the AGF to amend their filings.
Ezechukwu, who appeared for Edwards, also told the court that Agi had recently served his client with a fresh process and that they were still within the time allowed to respond.
Justice Omotosho consequently adjourned the case until September 30, 2026, for hearing.
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