*Orders FG to refund Rivers State Govt
A Federal High Court in Abuja on Wednesday barred the Federal Government from further making deductions from the Federation Account to fund its own agencies not listed in the 1999 Constitution (as amended) for direct allocation.
The court also declared as illegal, unlawful and unconstitutional, the direct allocations made so far by the Federal Government from the federation account to fund Nigeria Police Trust fund.
Delivering judgment in a suit by the Rivers State government to challenge the unlawful deductions from the Federation Account, Justice Ahmed Mohammed held that section 161 and section 162 of the 1999 Constitution were glaringly breached by the federal government in making direct allocation to the Police Trust Fund from the Federation Account.
Specifically, the Judge held that section 162 of the 1999 is clear and unambiguous to the effect that only the Federal, States and Local Governments shall be allocated fund directly from the Federation Account.
The court also held that section 4 of the Nigeria Police Trust Fund Act 2019 relied upon by the federal government to justify the unlawful deductions from the Federation Account is inconsistent with section 162 of the 1999 Constitution which recognizes only the Federal, States and Local Governments.
Justice Mohammed, while upholding that the suit of Rivers State against the unjust deduction succeed, ordered that the fund belonging to Rivers State but used to fund Nigeria Police Trust fund by the federal government should be refunded to the state.
But the judge declined to extend similar order of refund to the 35 remaining states on the grounds that they were not parties in the suit and that the Rivers State as the plaintiff in this matter did not file it on behalf of others.
The court upheld all arguments of Joseph Daudu (SAN), who stood for Rivers State that where the provisions of the 1999 Constitution are clear and unambiguous, they must be given their ordinary meanings
Justice Mohammed also agreed with Daudu that the federal government was completely wrong in the interpretation given to section 4 of the Nigeria Police Trust Fund Act to the effect that the Nigeria Police was established for the federal government alone and as such the funding is solely on the shoulder of the federal government.
The Rivers State in a suit marked FHC/ABJ/CS/511/2020 and instituted on its behalf by former President of the Nigerian Bar Association (NBA), Joseph Daudu, challenged the decision of the federal government to allocate funds directly from the Federation Account to fund some of its agencies, claiming that the decision violated section 162 of the 1999 Constitution.
The Rivers State government also claimed that by the federal government’s unlawful action, it has deprived it substantial revenue from the Federation Account and therefore prayed the court to nullify unlawful fund allocation from the Federation Account.
The plaintiff also claimed that the levies imposed on companies operating in Nigeria by the federal government to be paid directly to the Nigeria Police Force Trust Fund instead of the Federation Account was also illegal, unlawful and unconstitutional because it has also deprived it of substantial revenue accruable to the state as taxes.
In his verdict, the judge agreed with the plaintiff that under the relevant laws, such levies are supposed to be paid directly to the Federation Account and not to any federal government agencies.
Justice Mohammed then said, “I have carefully perused the issues raised by the plaintiff and I agree that no other person or entity is permitted to benefit direct fund allocation from the Federation Account.
“Section 4 of the Nigeria Police Trust Fund Act 2019 relied upon by the defendant to make direct fund allocation from the Federation Account is untenable as it runs contrary to section 162 (3) of the 1999 Constitution which expressly stated that the federal government, state governments and local governments shall derive direct fund allocation from the Federation Account”.
Rivers State Government also named the Attorney- General of the Federation (AGF), Accountant General of the Federation, Revenue Mobilization Allocation and Fiscal Commission and Minister of Finance as co-defendants to the suit.
But only the AGF filled processes to defend the federal government action.
The AGF had also in his preliminary objection, asked the court to decline jurisdiction in the matter on the grounds that such suit ought to be filed directly at the Supreme Court.
But Justice Mohammed dismissed the preliminary objection on the grounds that it was misplaced, absurd and unmeritorious.
