Supreme Court Dismisses States’ Suit Over Recovered Looted Funds
Court Rules States Wrongly Invoked Jurisdiction
The Supreme Court has dismissed a lawsuit filed by Nigeria’s 36 state governments and the Nigeria Governors’ Forum (NGF) challenging the federal government’s handling of recovered looted funds.
In a unanimous decision delivered on Friday, a seven-member panel of the apex court ruled that the plaintiffs improperly filed the case directly with the Supreme Court. The judgment, prepared by Justice Chidiebere Uwa and read by Justice Mohammed Idris, held that the Federal High Court had proper jurisdiction over the matter.
Details of the Controversial Case
The states had alleged that between 2015 and 2021 when the suit (SC/CV/395/2021) was filed, the federal government recovered approximately:
- N1.836 trillion in cash
- 167 properties
- 450 cars
- 300 trucks and cargoes
- 20 million barrels of crude oil worth over N450 billion
The plaintiffs claimed these recovered assets were improperly diverted into the Consolidated Revenue Accounts (CRA) and other non-constitutional accounts rather than being remitted to the Federation Account as required by law.
Constitutional Arguments Presented
The states based their case on several constitutional provisions:
- Sections 162(1) and 162(10) of the Constitution
- Section 80 of the Constitution
- Section 2 of the Finance (Control and Management) Act, 1958
They argued that all recovered funds qualify as revenue that must be shared among all tiers of government through the Federation Account.
Reliefs Sought by the States
The plaintiffs had requested the court to:
- Declare that recovered assets must be remitted to the Federation Account
- Order the remittance of N1.8 trillion in cash and N450 billion in non-cash assets
- Compel full disclosure of all unremitted recovered assets
- Mandate the Revenue Mobilisation and Fiscal Commission to develop distribution modalities
Court’s Final Decision
The Supreme Court’s dismissal on jurisdictional grounds means the substantive issues raised by the states were not addressed. The ruling leaves open the possibility for the states to refile their case in the proper court – the Federal High Court.
This decision represents a significant victory for the federal government in its ongoing disputes with state governments over resource control and revenue allocation.
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