Omirhobo prays court to void sections of Finance Act 2020

Seeking to transfer N895.5 billion unclaimed public funds to crisis intervention fund

HUMAN right activist and lawyer, Chief Malcolm Omirhobo, has sued the Federal Government and 38 others at the Federal High Court, Lagos, challenging section 77 of the Finance Act 2020, which empowers Nigerian banks to transfer all unclaimed dividend of public limited liability companies quoted on the Nigerian Stock Exchange, totaling N895.5 billion, to crisis intervention fund.

Some of the other defendants in the suit are, the Attorney General of Nigeria, the Accountant General of Nigeria, the minister of finance, the National Deposit Insurance Corporation ( NDIC), the Securities and Exchange Commission ( SEC), the Crisis Intervention Fund, the Central Bank of Nigeria ( CBN) and all Nigerian banks among others.

The applicant, who said he is suing for himself and the Nigerian public, argued that creating such crisis intervention funds violates sections 1 ( 1)( 3) ( 4)( the second schedule, legislative powers part I, exclusive legislative list and part II, concurrent legislative list), 40 and 44 ( 1)( 2)( H)( I) of the 1999 constitution.

Omirhobo argued that by the construction and interpretation of the provisions of Section 1( 1)( 3) of the 1999 Constitution, the Constitution is the supreme law of Nigeria and its provisions have binding force on all the defendants and all persons and authorities throughout country and that if any other law is inconsistent with the provisions of the constitution, the constitution shall prevail and that other law shall to the extent of the inconsistency be void. He insisted that Section 77 of the Finance Act 2020, which empowers the 9th to 39th defendants to transfer all unclaimed dividends of public limited liability companies quoted on the Nigerian Stock Exchange worth N158 billion and all the unutilised amount in all dormant bank accounts maintained in or by deposit money bank worth N737.5 billion, totaling the sum of N895.5 billion, which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in bank accounts throughout Nigeria in lawful custody of the 9th to 39th defendants to a crisis intervention trust fundor any Trust, is unlawful.

Managing Director, Dantata Success and Profitable Company, Alh Lawani Sanni ( left) with Managing Partner, DSPC Hajia Basirat Ibrahim Dantata during their appearance at the Federal High Court, Abuja over the allegation of operating unregistered investment scheme amounting to over N2 billion.