A Federal High Court in Abuja on Wednesday stopped the federal government from further making deductions from the federation account to fund its own agencies not listed for direct allocation in the 1999 constitution (as amended).
Rivers State, in the suit marked FHC/ABJ/CS/511/2020 and instituted on its behalf by former president of the Nigerian Bar Association NBA, Joseph Daudu (SAN), had challenged the decision of the federal government to allocate funds directly from the federation account to fund some of its agencies, arguing that the decision violated section 162 of the 1999 constitution.
The Rivers State government also claimed that by the federal government’s unlawful action, it has deprived it substantial revenue from the federation account.
It prayed the court to nullify unlawful fund allocation from the federation account PTF.
The plaintiff also claimed that the levies imposed on companies operating in Nigeria by the federal government to be paid directly to the Nigeria Police Force Trust Fund instead of the Federation Account was also illegal, unlawful and unconstitutional because it has also deprived it of substantial revenue accruable to the state as taxes.
Justice Ahmed Mohammed in his judgement held that section 161 and section 162 of the 1999 constitution were glaringly breached by the federal government in making direct allocation to the Police Trust Fund from the federation account.
The court held that section 162 of the constitution is clear and unambiguous to the effect that only the federal, states and local governments shall be allocated funds directly from the federation account.
It added that section 4 of the Nigeria Police Trust Fund Act 2019 relied upon by the federal government to justify the unlawful deductions from the federation account is inconsistent with section 162 of the 1999 constitution which recognizes only the federal, states and local governments.
The judge ordered that the fund belonging to Rivers State which was used to fund Nigeria Police Trust fund by the federal government should be refunded to the state, but declined to extend a similar order of refund to the 35 remaining states on the ground that they were not parties in the suit and that Rivers State, as the plaintiff in the matter, did not file it on behalf of others.
The court upheld all arguments of counsel to Rivers State, Joseph Daudu (SAN), that where the provisions of the 1999 constitution are clear and unambiguous, they must be given their ordinary meanings
Justice Mohammed also agreed with Daudu that the federal government was completely wrong in the interpretation given to section 4 of the Nigeria Police Trust Fund Act to the effect that the Nigeria Police Force was established for the federal government alone and as such the funding is solely on the shoulder of the federal government.
The judge agreed with the plaintiff that under the relevant laws, such levies are supposed to be paid directly to the federation account and not to any federal government agencies.
“I have carefully perused the issues raised by the plaintiff and I agree that no other person or entity is permitted to benefit from direct fund allocation from the Federation Account.
“Section 4 of the Nigeria Police Trust Fund Act 2019 relied upon by the defendant to make direct fund allocation from the Federation Account is untenable as it runs contrary to section 162 (3) of the 1999 Constitution which expressly stated that the federal government, state governments and local governments shall derive direct fund allocation from the Federation Account,” he said.
