FG Dragged to Court for Dwindling Federation Account through Petroleum Subsidy
Bayelsa State has dragged the Federal Government to the Supreme Court, for its activities under the Petroleum Subsidy regime, which have resulted in continuous dwindling revenue, in the Federation Account.
In the suit filed by Mr. Tayo Oyetibo, SAN on behalf of Byelsa State AttorneyGeneral, Mr. Kemasuode Wodu, against the Attorney- General of the Federation, Mr. Abubakar Malami, SAN, the State argued that that the N6 .43 trillion claimed to have been spent by the Federal Government on petroleum subsidy, was kept as “Withheld Fund”.
The State claimed that, the unlawful deduction by the Federal Government, has adversely affected the quantum of monies payable to States of the Federation, and Bayelsa in particular, as well as 13 percent derivation fund payable to the its State from the Federation account.
The Plaintiff therefore, prayed the Supreme Court, to restrain the Federal Government from utilising any part of the revenue from crude oil to pay for petroleum subsidy.
In its statement of claim, the Plaintiff averred that between January 2011 and December 2017, the revenue collected from the sale of crude oil lifted by the Federal Government under its Domestic Crude Oil Sales Revenue regime, amounted to over N15 trillion, out of which less than N9 trillion was remitted to the Federation Account.
The Plaintiff further stated that, government has deprived the oil producing States of N836,015,741,899.83 out of withheld fund, based on 13 % derivation formula, and the Plaintiff’s share amounts to N136,266,385,850.96 which has remained unpaid to the Plaintiff by the Federal Government.
The State through its counsel, Oyetibo, SAN, is praying the Apex Court to declare that, by the combined operation of the provisions of Section 44(3) and Section 162(1) of the Constitution of the Federal Republic of Nigeria 1999 as amended, all revenue collected from the sale of crude oil by or on behalf of the government of the Federation of Nigeria, shall be paid into the Federation Account.
"A declaration that, by virtue of Section 162(1) of the Constitution of Federal Republic of Nigeria 1999 as amended, all revenue collected shall be paid into the Federation Account, except the proceeds from the Personal Income Tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the Ministry or Department charged with the responsibility of Foreign Affairs, and residents of the Federal Capital Territory, Abuja.
"An order that the Federal Government pay Plaintiff the sum N136,266,385,850.96 and N154,719,603,662.84, being monies payable to the Plaintiff by the Defendant from Federation Account between 1st January, 2011 and 31st December, 2017 pursuant to the provision of Section 1 of the Allocation of Revenue (Federation Account, etc) Act, and under the Domestic Crude Oil Sales Revenue regime of the Defendant, but which were withheld by the Defendant and represented to have been used to settle Petroleum Subsidy without the Plaintiff's consent", it averred.