The Central Bank of Nigeria (CBN) has blamed a string of lawsuits by the Nigeria Governors’ Forum and other actors for delaying the completion of a ₦85.7 billion contract for the construction of primary healthcare centres across the 774 local government areas.
Documents filed by the apex bank in a pending case at the Federal High Court, Abuja (suit no: FHC/ABJ/CS/1797/2024), reveal that 584 health centres have so far been completed, leaving 190 unfinished due to what the CBN described as “interfering litigations.”
The CBN’s disclosure comes amid a legal challenge by two lawyers—Onabe Wilfred Ewoh and Fayenengigha Israel Jacob—who sued the Minister of Finance, the Attorney General of the Federation, and the CBN Governor, among others, for allegedly authorizing deductions from local government allocations without due process, according to Naira Metrics.
Litigation Rooted in 2007 Contract
The dispute stems from a 2007 Federal Executive Council (FEC) approval for the construction of one comprehensive health centre in each local government and area council in Nigeria. The project was initiated by the Association of Local Governments of Nigeria (ALGON) through a public-private partnership.
According to court filings, the plaintiffs, claiming to represent Boki Local Government Area of Cross River State and Brass Local Government Area of Bayelsa State, argue that the ₦85 billion project was executed without the consent of democratically elected local government officials.
They are seeking an injunction restraining the federal authorities from further deductions linked to the project, alleging that the former ALGON trustees who signed the contract lacked the mandate to represent the LGAs.
CBN: LGAs Were Consulted
Countering the claims, the CBN, through an affidavit sworn by one of its officials, Nwabuko Catherine Omoh, stated that all 774 local governments were consulted and consented to the project before it was approved by the FEC.
“No local government chairperson objected to the construction or to the deductions from monthly allocations used to fund the project,” Omoh noted.
She added that the plaintiffs are neither elected officials nor representatives of any LGA and thus have no legal standing to challenge the contract.
The CBN also argued that the pending litigation continues to deprive 190 LGAs of critical healthcare infrastructure despite their financial contributions to the project. “These centres would have been completed if not for these lawsuits filed by the governors’ forum and other meddlesome interlopers,” the affidavit stated.
Defendants Urge Court to Dismiss Case
CBN counsel, Tairu Adebayo, asked the court to dismiss the suit for lacking credible evidence and legal standing.
Similarly, Wale Balogun (SAN), counsel to Mathan Nigeria Ltd—the contractor—argued that the plaintiffs have not demonstrated any personal injury or loss and are not recognized officials of the LGAs they claim to represent.
He revealed that the elected chairmen of both Boki and Brass LGAs have filed affidavits distancing themselves from the case.
“It is trite law that a party without financial or legal interest in a transaction cannot sue on behalf of another,” Balogun argued.
Justice Mohammed Umar has fixed July 3, 2025, for the hearing of all applications in the case.
Background and Gov’t Effort
The initiative to construct primary healthcare centres in every LGA dates back to 2007, when the then Minister of Information, Frank Nweke Jr., announced the FEC’s conditional approval of the ALGON-proposed PPP arrangement.
Although that early implementation lagged, the Buhari administration and now the Tinubu government have continued to emphasize the revitalization of primary healthcare.
On April 23, 2025, the Federal Government announced the upgrade of 901 PHCs and plans to rehabilitate an additional 2,701 through the National Primary Health Care Development Agency (NPHCDA), aiming to ensure at least one functional PHC in each political ward.
