The Minister of Justice and Attorney General of the Federation (AGF), Chief Lateef Fagbemi, on Tuesday confirmed the recovery of over $110 million in assets from various countries.
Speaking during the 2024 budget defense and 2025 budget proposal session organized by the House of Representatives’ Committee on Justice, chaired by Hon. Olumide Osoba, Chief Fagbemi did not provide a detailed breakdown of the funds, including the $52.88 million in recovered assets linked to former Minister of Petroleum Resources Diezani Alison-Madueke by the United States government.
He explained that the Ministry has developed a template for agreements, which is shared with some state governments to assist them in reviewing contracts.
He noted that many damages and risks arise from poorly negotiated agreements. Addressing judgments obtained against the government, Chief Fagbemi cited the “popular case of P&ID,” highlighting issues such as engaging lawyers who lacked the necessary expertise.
He emphasised the importance of hiring capable professionals, saying, “Some of these commercial transactions should not be entrusted to friends or lawyers simply due to patronage. They must have the requisite training and experience. We have learned our lessons in this regard.”
He continued, “We are now ensuring that those we engage are vetted for competence, as advised during the P&ID case. When assigning cases, we focus on the counsel’s competence, not just their status or affiliations. For instance, being a constitutional lawyer in Nigeria does not necessarily make one proficient in commercial law or arbitration, whether offshore or locally.”
Chief Fagbemi also noted that while state governments have the liberty to engage in foreign transactions, sub-national governments are not recognized in arbitration proceedings. He stressed that the national government assumes responsibility in such cases.
“Back home, the Federal Government can ask sub-national governments to pay or indemnify the national government. If they fail to indemnify, deductions can be made from their allocations during FAAC disbursements.”
To prevent future issues, he assured that measures are being implemented to ensure agreements are properly vetted and signed. He added that the Ministry has declined to approve several agreements between foreign agencies when they do not meet standards.
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Hon. Olumide Osoba commended the Ministry for its landmark achievements. He noted that in the past year, Nigeria has witnessed significant judicial decisions reinforcing justice and governance.
One of these was the Supreme Court ruling on Local Government Autonomy, which affirmed the financial and administrative autonomy of local governments. This judgment declared it unconstitutional for state governors to withhold funds allocated to local governments or dissolve councils arbitrarily.
It recognized local governments as the third tier of governance, strengthening grassroots democracy and improving service delivery. Another major success was in the P&ID case, where Nigeria achieved a legal victory by overturning a previous judgment that had imposed substantial financial liabilities on the country, safeguarding national assets and preserving economic stability.
Hon. Osoba stated that these outcomes highlight the robustness of Nigeria’s legal system and the importance of unwavering commitment to justice and the rule of law. However, during the budget defense, Hon. Osoba expressed dissatisfaction with the Ministry’s failure to provide details on the utilization of N4.7 billion reportedly spent on legal services. He emphasized the importance of ensuring entities working with Nigeria comply with its laws, particularly regarding arbitration.
“It is disheartening when entities take our money and insist on arbitration being governed by foreign laws and conducted outside Nigeria. We now have the Arbitration and Prosecution Act, passed in 2023, which has significantly improved our standing in these matters,” he said.
The lawmakers also accused the Ministry of overstepping its bounds by reallocating funds approved for the 2024 fiscal year for unapproved purposes without following due process.
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