The Supreme Court on Friday dismissed a suit filed by the 36 state governments and the Nigeria Governors’ Forum (NGF) against the Federal Government over the alleged diversion of ₦1.8 trillion in recovered assets.
Delivering the lead judgment, prepared by Justice Chidiebere Uwa and read by Justice Mohammed Idris, the apex court ruled that it lacked the jurisdiction to hear the matter. It stated that the dispute fell squarely within the purview of the Federal High Court, not the Supreme Court.
The suit, marked SC/CV/395/2021, accused the Federal Government of mismanaging looted assets recovered between 2015 and 2021. The plaintiffs claimed that a total of ₦1.84 trillion in cash and various non-cash assets—including 167 properties, 450 vehicles, 300 trucks, cargo, and over 20 million barrels of crude oil valued at ₦450 billion—were recovered during the period but not properly remitted as constitutionally required.
According to the states, instead of transferring the recovered funds to the Federation Account as mandated by law, the Federal Government diverted them into the Consolidated Revenue Account (CRA) and other unauthorized accounts.
The plaintiffs argued that the CRA is intended exclusively for federal earnings and the Federal Government’s share from the Federation Account. They maintained that revenue from recovered assets belongs to all tiers of government and should be distributed accordingly.
They challenged the creation and use of the Asset Recovery Account and the Interim Forfeiture Recovery Account, which they claimed contravened the provisions of Sections 80, 162(1), and 162(10) of the 1999 Constitution (as amended), as well as the Finance (Control and Management) Act of 1958.
In their prayers, the plaintiffs asked the court to declare that all proceeds from recovered assets are revenues of the Federation and must be paid into the Federation Account for equitable distribution among federal, state, and local governments.
They further sought:
- An order compelling the remittance of ₦1.8 trillion and non-cash assets valued at ₦450 billion into the Federation Account.
- A directive for the Federal Government to submit a comprehensive account of recovered assets not yet remitted.
- A mandate instructing the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to develop a framework for distributing recovered assets among the federating units.
However, in a unanimous ruling by a seven-member panel, the Supreme Court struck out the case, concluding that the matter was wrongly filed before the apex court and should have originated at the Federal High Court.
