The Federal High Court in Abuja, on Monday, ordered the Federal Government to pay $1,638 billion oil revenue to the Delta State.
In a judgment delivered by Justice Donatus Okorowo, the court declared the suit as “unchallenged”, saying it was satisfied that the amount was 13 per cent derivative sum due as arrears of revenue payable to the state.
Granting all the reliefs sought by Plaintiff, the court stressed that the suit, being an action instituted to recover revenue accruing to the Delta State government, qualified for the undefended list.
Delta state had in the suit marked FHC/ABJ/CS/660/2012 and filed through its lawyer, Ken Njemanze (SAN), urged 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 federal government.
The state prayed 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 April 12, 2018, and clause 3.0(v) the defendant’s further letter of engagement dated November 19 2018, pursuant to clause lll(d) of the terms of the settlement made the (consent) judgment by the Supreme Court, including a 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.”
In a counter-affidavit filed before the court, the AGF sought Plaintiff’s dismissal of the suit based on lack of competence.
In the affidavit, the AGF claimed that Delta State was not a party in 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 Plaintiff’s claim against Defendant without a full hearing on the matter.
In a preliminary objection dated September 22, 2021, the AGF further challenged the jurisdiction of the Federal High Court to entertain the suit.
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, Justice Okorowo dismissed the objection in his judgment, even as he entered the judgment favouring Plaintiff.
“The suit succeeds on its merit and all the reliefs sought by Plaintiff.
“Judgement is hereby entered on the claims of the Plaintiff in this case. This is the order of this court,” the judge held.
Recall that in June, the court had also ordered FG to pay $951 million to the Bayelsa Government as a 13 per cent derivative sum due to it as arrears of revenue.
It had also ordered FG to pay a $3.3 billion revenue share from crude oil sales to Akwa Ibom and Rivers states.
