The Supreme Court has dismissed a legal action brought by the governments of Nigeria’s 36 states and the Nigeria Governors’ Forum (NGF) challenging the Nigerian Government’s handling of recovered looted assets.
A panel of seven justices delivered a unanimous verdict, declaring that the suit was improperly filed before the apex court.
In the lead judgment prepared by Justice Chidiebere Uwa and read by Justice Mohammed Idris, the court ruled that the claimants wrongly sought the jurisdiction of the Supreme Court.
The court held that the issues raised fell under the purview of the Federal High Court.
The state governments alleged that between 2015 and 2021, the Federal Government had recovered N1.8 trillion in stolen funds, 167 properties, 450 vehicles, 300 lorries and cargoes, and approximately 20 million barrels of crude oil valued at over N450 billion. They argued that these were not remitted to the Federation Account, as mandated by the Constitution.
Instead, the claimants contended, the Federal Government diverted the recovered assets into the Consolidated Revenue Fund (CRF) and other accounts not recognised by the Nigerian Constitution.
According to the states, the CRF is meant for the Federal Government’s share of national revenue, specific state earnings, and other income such as licence fees, land revenue, rent, interest on investments, and Personal Income Tax from Armed Forces personnel.
They claimed that the creation of accounts such as the Asset Recovery Account and the Interim Forfeiture Recovery Account contradicts the constitutional requirement that all national revenue be paid into the Federation Account.
The plaintiffs cited Sections 162(1), 162(10), and 80 of the 1999 Constitution (as amended), along with Section 2 of the Finance (Control and Management) Act, 1958, to argue that recovered assets must be treated as national revenue.
They maintained that it is unconstitutional to divert such funds into accounts other than the Federation Account, or to apply them for any purpose without due process.
The states asked the court to declare that all income, returns, and receipts from forfeited or recovered assets constitute revenue that must be remitted to the Federation Account for distribution among the federal, state, and local governments.
They sought an order compelling the Federal Government to remit N1.8 trillion in cash and N450 billion in non-cash assets recovered since 2015.
Additionally, they requested the court to compel the President and relevant officials to provide a comprehensive account of all recovered assets not paid into the Federation Account.
They also urged the court to direct the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to establish a framework for distributing such recovered assets equitably among all tiers of government.