The Supreme Court has struck out a suit by the 36 states’ governments and the Nigeria Governors’ Forum (NGF) challenging the Federal Government’s application of recovered looted funds.
In an unopposed decision, a seven-member panel of the Supreme Court ruled that the suit was improperly filed before the apex court.
Delivering the lead judgement prepared by Justice Chidiebere Uwa and read by Justice Mohammed Idris, the court held that the plaintiffs had wrongly invoked its original jurisdiction.
According to the court, the subject matter of the suit falls within the jurisdiction of the Federal High Court.
The plaintiffs, a group of states, alleged that between 2015 and 2021, the federal government recovered assets valued at ₦1.8 trillion in cash, 167 properties, 450 vehicles, 300 trucks and cargoes, and 20 million barrels of crude oil worth over ₦450 billion. They claimed these were not remitted to the Federation Account as required by the Constitution.
Instead, the plaintiffs argued, the funds were diverted to the Consolidated Revenue Fund and other accounts not recognized by the Constitution.
They further contended that the Consolidated Revenue Fund is designated for the federal government’s share of revenue, federal earnings, and funds belonging to specific state governments. It also includes revenue from licences, land fees, administrative charges, and other income sources.
The states challenged the legality of the Asset Recovery Account and Interim Forfeiture Recovery Account created by the FG, asserting that these contradict constitutional provisions.
Referencing Sections 162(1), 162(10), and 80 of the 1999 Constitution and Section 2 of the Finance (Control and Management) Act, 1958, the plaintiffs argued that all proceeds from confiscated and recovered assets constitute public revenue and must be paid into the Federation Account.
They urged the court to declare it unconstitutional for such funds to be diverted to any other account, including the CRA, and requested an order compelling the FG to remit ₦1.8 trillion in cash and ₦450 billion in non-cash assets recovered since 2015 to the Federation Account.
Additionally, the plaintiffs sought an order mandating the federal government to provide a full account of unreconciled recovered assets and to direct the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to devise a formula for distributing recovered assets among the three tiers of government.
