The ECOWAS Court of Justice has ordered Cross River State Government to repay the sum of US$6,455,846 to the ECOWAS Bank for Investment and Development (EBID) regarding the Tinapa business resort.
The suit was heard in November 2020. On Friday, the court also ordered the state to pay an interest of 6.5 per cent per annum on the amount starting from 31 August, 2018. The repayment accrued from an outstanding loan granted the government in 2005.
Justice Edward Amoako Asante said the sum represents the situation of the Tinapa Free Zone Project loan in the Applicant’s book as at 31 August 2018. He asked Cross River to submit to the Court, within two months, a report on its measures to implement the Court’s orders relating to the loan.
Although the court granted most of the reliefs sought by the Applicant, it declined the Applicant’s claim for immediate execution of the Irrevocable Standing Payment Order (ISPO).
The ISPO is a loan condition precedent mandating the Accountant General of the Federal Republic of Nigeria tagged “Guarantee” in Clause 7.05 of the loan agreement to satisfy the indebtedness.
The court also refused to grant the Applicant’s claim for solicitor’s fees on the ground that it was not backed by documentary evidence. The Applicant EBID had filed suit no ECW/CCJ/APP/14/19 on 2nd April, 2019 urging the Court to declare its Loan Agreement No 7/AP/LAR/FRDF/04/05 with Cross River State Government (CRSG) as valid, binding and subsisting between the parties.