CBN, Melrose General Services agree to resolve contempt case linked to Paris Club refund as apex court’s judgment sparks legal compliance concerns.
In a significant turn in the prolonged legal saga over the controversial Paris Club refund, the Central Bank of Nigeria (CBN) and Melrose General Services Limited have agreed to resolve their legal dispute out of court. This development came to light on Monday at the Federal High Court in Abuja, marking a new chapter in a case that has tested the boundaries of judicial compliance and institutional accountability in Nigeria’s financial governance.
Representing both parties before Justice Mohammed Umar, Senior Advocates of Nigeria (SANs) Yusuf Ali (for the CBN Governor, Olayemi Cardoso) and Chikaosolu Ojukwu (for Melrose) disclosed the decision to pursue an amicable settlement.
At the heart of the dispute is a contempt charge filed by Melrose General Services against the CBN Governor and key federal officials, including the apex bank’s Director of Legal Services, Kofo Salam-Alada, the Economic and Financial Crimes Commission (EFCC), and the Minister of Finance. The company alleged partial compliance with a Supreme Court judgment delivered in June 2024, which had ordered the unfreezing and full release of its funds.
The judgment had quashed earlier forfeiture orders from lower courts, stating unequivocally that the EFCC had failed to establish that the funds—approximately ₦1.22 billion and an additional ₦220 million disbursed as loans and investments—were proceeds of fraud. These funds were tied to consultancy payments under the now-notorious Paris Club refund to the Nigerian Governors’ Forum (NGF), a recurring source of fiscal and legal controversy in Nigeria’s public finance space.
While Melrose has since recovered the ₦1.22 billion, it claims that the outstanding ₦220 million remains unpaid, prompting the contempt charge. The company insists that the failure to release the balance undermines the authority of the Supreme Court and reflects institutional disregard for the rule of law.
During Monday’s proceedings, Ali SAN acknowledged that “while the matter began with very large figures, the current outstanding sum is just ₦20 million.” He emphasized that the parties had engaged in initial dialogue and were confident the matter could be resolved without further judicial intervention. Ojukwu SAN echoed this sentiment, stating that discussions were ongoing and that Ali had undertaken to engage with the CBN on a final resolution.
Justice Umar welcomed the reconciliation efforts and adjourned the case to July 22 for a formal report on the outcome of the negotiations.
BRANDECONOMY Analysis:
This case underscores the complexities of enforcing Supreme Court judgments in Nigeria’s financial and administrative systems, especially when high-stakes public funds and institutional reputations are involved. While the decision to settle out of court may signal a pragmatic path to closure, it also highlights recurring issues around delayed compliance with judicial pronouncements—an issue that continues to erode investor confidence and the sanctity of court orders.
Moreover, the broader controversy surrounding the Paris Club refund—marked by allegations of inflated consultancy claims and disputed disbursements—raises critical questions about public financial management, regulatory oversight, and the legal enforceability of government contracts in Nigeria.
As the July 22 settlement report date approaches, stakeholders in both legal and financial sectors will be watching closely, not only to see whether Melrose finally receives full restitution but also to gauge whether the CBN’s handling of this case restores confidence in institutional accountability under the rule of law.
