Oil derivatives: Court orders FG to pay $1.638bn revenue arrears
By Uthman Salami
The Federal high Court sitting in Abuja has ordered the Federal Government to pay $1,638 billion to the Delta State and another over 13 per cent oil revenue derivative arrears due to the State
Earlier in June, the Court had also ordered the Federal Government to pay the sum of $3.3 billion to Rivers and Akwa Ibom states, being their revenue share from crude oil sales.
Justice Donatus Okoronkwo of the Abuja division of the Federal High Court said, in his judgment, that he was satisfied that the amount was 13 per cent derivative sum due as arrears of revenue payable to the oil-rich state.
The Court further granted all the reliefs that were sought by Plaintiff, stressing that the suit, being an action instituted to recover revenue accruing to the Delta State government, qualified for the undefended list.
Earlier, the Delta state had in the suit marked FHC/ABJ/CS/660/2012, filed through Chief Ken Njemanze, SAN, prayed the court to compel the Attorney-General of the Federation, AGF, to pay five per cent of $50billion recovered as additional revenue that accrued to the Nigerian government.
The Plaintiff urged the court to, “direct the Defendant (AGF) to pay the sum of $ 1,638,396,277.00 (One billion, six hundred and thirty-eight million, three hundred and ninety-six thousand, two hundred and seventy-seven United States dollars) being the 13% derivative sum due as arrears of revenue payable to Delta State as assessed.
“A consequential order of this court compelling the defendant to net off and pay five per cent of the said sum as per clause 3.0(v) of the defendant’s letter of engagement dated 12 April, 2018 and clause 3.0(v) the defendant’s further letter of engagement dated 19 November, 2018, pursuant to clause lll(d) of the terms of settlement made the (consent) judgement by the Supreme Court”
It also prayed for, “10% post judgment interest at court rate on the said $ 1,638,396,277.00 (One billion, six hundred and thirty-eight million, three hundred and ninety-six thousand, two hundred and seventy-seven United States dollars) to the plaintiff until final liquidation thereof.”
However, in the Federal Government’s counter-affidavit, filed through the office of the Attorney of the Federation (AGF), sought the dismissal of the suit, claiming that it was in dearth of competence.
A staff of the Federal Ministry of Justice, Abuja, the AGF had argued that Delta State was never a party to the settlement in a similar revenue derivation suit between the Akwa-Ibom, Bayelsa and Rivers State governments delivered by the Supreme Court.
He contended that it would not serve the interest of justice to grant the Plaintiff’s claim against the Defendant without full hearing of the matter.
He said, “That the terms of settlement in question have been entered as judgement of the court between the parties before the court,” the AGF argued.
The office of the AGF had also challenged the jurisdiction of the Federal High Court to entertain the case in its preliminary objection dated September 22, 2021.
He argued that under Section 251 of the 1999 Constitution, as amended, the High Court, lacked the powers to adjudicate between a State and the Federation.
“The subject matter of this suit is a dispute between the Delta State as a State and the Federation.
“That the subject matter relates to the recovery of revenue accruing to the federation account, the beneficiaries of which are the Federation and the States of the Federation.
“That the subject matter of this suit is not to be commenced by way of undefended list,” the AGF added.
However, in his judgment, Justice Okorowo dismissed the objection, even as he entered judgement in favour of the Plaintiff.
“The suit succeeds on its merit and all the reliefs sought by Plaintiff.
“Judgment is hereby entered on the claims of the plaintiff in this case. This is the order of this court,” Justice Okorowo held.
Recalled that the same court had also ordered FG to pay $951 million to the Bayelsa Government as 13 per cent derivative sum due to it as arrears of revenue in June.
