Alleged Illegal FAAC Deductions: Adamawa, Oyo States Drag FG to Supreme Court

Wale Igbintade

The Adamawa State Government, and its Oyo State counterpart have dragged the federal government before the Supreme Court over alleged deductions from the federation account.
The states in their separate suits are seeking an interpretation of Section 162 (1), (2), and (3) of the constitution regarding the distribution of revenue from the account.

Specifically, in Suit Number SC/CV/547/2024 between the Attorney General of Oyo State and the Attorney General of the Federation, filed by Chief Bolaji Ayorinde SAN, the state is asking the apex court to restrain the federal government from further deduction for the purposes of funding any project or effecting any payment whatsoever, except for the constitutional purposes of distributing such monies or amount among the federal, state and the local government councils.
The suit is also seeking for “an order  directing the federal government, whether by herself, agencies, commissions, officers, servants, and/or privies or howsoever described to henceforth pay and distribute such sums or amount standing credit of the Oyo State Government and the Local Government Councils, from the Federation Account, from time to time, to the Oyo State Government, in accordance with the mandatory provisions of Section 162(4) and (5) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) on such terms and in such manner as may be prescribed by the National Assembly.

Besides, the state is praying for the following declarations: “A declaration that it is contrary to the provisions of Section 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as Amended) for the Federal Government of Nigeria to deduct, charge or howsoever deal with any amount standing to the credit of the Oyo State Government in the Federation Account, in furtherance of any alleged debt, agreement or howsoever described,
“A declaration that by virtue of the provisions of Section 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as Amended), the Federal Government of Nigeria lacked the constitutional powers to deduct, charge any sum or in any other manner deal with any amount standing to the credit of the Oyo State Government in the Federation Account before distribution of the revenue to the Oyo State Government.

“A declaration that the act or conduct of the Federal Government of Nigeria in unilaterally deducting or charging any sum from the amount due and standing to the credit of the Oyo State Government in the Federation Account, in furtherance of any agreement, charge before distribution of remainder of the revenue to the Oyo State Government is illegal, unconstitutional, null and void.

 
“An order directing the Federal Government Nigeria, whether by herself, agencies, Commissions, officers, servants, and/or privies or howsoever described to henceforth pay and distribute such sums or amount standing credit of the Oyo State Government and the Local Government Councils, from the Federation Account, from time to time, to the Oyo State Government, in accordance with the mandatory provisions of Section 162(4) and (5) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) on such terms and in such manner as may be prescribed by the National Assembly.”

In its Originating Summons brought pursuant to Sections 4, 6(6)(a) & (b) and 162 of the Constitution and Order 3 Rules 1 & 6 of the Supreme Court Rules (As Amended 2014) and under the inherent jurisdiction, the  State is asking the apex court  to determine:  “Whether it is not contrary to the provisions of Section 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as Amended) for the Federal Government of Nigeria to deduct, charge or howsoever deal with any amount standing to the credit of the Oyo State Government in the Federation Account, in furtherance of any alleged debt, agreement or howsoever described?
“Whether in view of the provisions of Section 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as Amended), the Federal Government of Nigeria lacked the constitutional powers to deduct, charge any sum or in any other manner deal with any amount standing to the credit of the Oyo State Government in the Federation Account before distribution of the revenue to the Oyo State Government?”
In a 35-Paragraph affidavit in Support of Originating Summons deposed to by Director of Treasury of Oyo State, Ayanniyi Taiwo Michael, he stated that he personally receives details of all the meetings of the Technical Sub-committee of the Federal Account Allocation Committee, where the revenue in the Federation Account is distributed to states including Oyo State and involved in the coordination of the revenue received by the Oyo State Government from the Federation Account.

He stated that the entitlement of the Oyo State to share in any amount standing to its credit in the Federation Account is without any encumbrances by any person or authority,

He further stated: “That Oyo State as one of the States of the Federation is entitled to receive the total sum or amount standing to its credit from the Federation Account on such terms or in any manner as may be prescribed by the National Assembly.

“That Oyo State has a total of 33 Local Government Councils; of which the amounts standing to the credit of the Local Government Councils are constitutionally mandated to be allocated to the State or the benefit of their local government councils.

“That all revenues collected by the Government of the Federation are paid into the Federation Account and are constitutionally distributed between the federating units upon a revenue sharing formula or principle.

That in furtherance of the distribution of the revenue to the various States, the amount standing to the credit of the Oyo State in the Federation Account ought to be distributed to the State in the sum or quantum determined by the relevant agencies of the Government of the Federation without any prior deductions, charges or encumbrances ete.

“That the entirety of such amount of standing to the credit of the Oyo State in the Federation Account ought to be paid and distributed to the Oyo State Government without deductions, lien, charge or any other encumbrances.

“That in violation of the mandatory provisions of the 1999 Constitution, the Federal Government of Nigeria, have resorted to the illegal and unconstitutional practices of making prior or first line deductions and charges from the Federation Account before distribution of the remainder to the States and Local Government Councils.”

Also, Adamawa state government in its suit argued that “the entire sum in the Federation Account must be distributed among all levels of government without deductions, except as permitted by law.

“The president must comply strictly with the Constitution in managing and distributing revenue,” the Adamawa State government stressed, adding, “All revenue collected, except those exempted by the constitution, must be paid into the Federation Account for distribution to all tiers of government.”

The state government is seeking a declaration from the Supreme Court that any deductions or withholdings made without constitutional backing be declared unconstitutional.

“The federal government’s discretion to manage revenue is limited to only what is expressly permitted by the constitution,” the government stated.

Adamawa State is seeking a strict interpretation of the constitution to ensure that revenue distribution is conducted without arbitrary deductions or withholdings by the federal government.

No date has been fixed for hearing of the suits.