AU.S.-based Nigerian businessman, Ted Iseghohi-Edwards, is initiating legal steps to seize Nigerian assets in America after the federal government reneged on its agreement to pay a $159 million debt, Peoples Gazette can report based on court filings.
Nigeria’s government, attorney-general and minister of justice, and Debt Management Office (DMO) were listed as the first, second and third defendants in the suit filed at the United District Court for the District of Columbia on April 24.
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At issue was the failure of the federal government to honour the first tranche of $159 million promissory note due for payment on October 15, 2022.
Although the plaintiff said the debt was money owed him for “legal fees”, it is unclear what type of legal services he rendered to the federal government to have amassed such humongous debt of $159 million payable every October 15 from 2022 through to 2031.
On September 21, 2021, the debt management office issued 10 promissory notes to Mr Iseghohi-Edwards with a face value of $159 million each at six per cent interest rate, bringing the total debt to $164 million.
The first promissory note was due for maturity on October 15, 2022, according to a statement of claim made by the plaintiff.
“The Government of the Federal Republic of Nigeria by this Promissory Note, which is governed by the laws of the Federal Republic of Nigeria, hereby unconditionally and irrevocably promises to pay to the order of TED ISEGHOHI EDWARDS the sum of FIFTEEN MILLION. NINE HUNDRED THOUSAND DOLLARS ONLY on the 15th day of October 20 (Maturity Date”),” reads the note signed by finance minister and referenced FGN/PN/JD/C.A/FX/2021/05A on September 21, 2021.
“This Promissory Note is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” the note added.
As it stands, the plaintiff has the right to go after Nigeria’s assets in the U.S. based on the clause that says the promissory note is “charged upon the general assets of Nigeria.”
In another letter signed by Oladele Afolabi, director, portfolio management department of the debt office, on October 5, 2022, Mr Iseghohi-Edwards was asked to tender the original copy of the promissory note for redemption and payment.
But despite submitting all the required documents nine months ago, the debt office has neither paid the debt nor given any explanation for the non-payment.
The plaintiff’s complaints run counter to the DMO’s boasts that it has built a solid reputation for upholding all of its financial commitments and isn’t known for backing out of its pledges after the debt office redeemed a $500 million Eurobond last month.
Chinenye Onu, DMO spokesperson, did not immediately respond to enquiry for comments on the matter.
