By Tobi Soniyi in Abuja
The Supreme Court will on December 8 hear the
suit filed by the 36 states of the federation
challenging alleged irregularities in the methods
adopted by the Federal Government, acting
through the Nigerian National Petroleum
Corporation (NNPC), in deducting fuel subsidy
funds.
The states alleged that the Federal Government
had been cheating them through the ways and
manner the subsidy claims were paid.
Mr. Joseph Daudu and Mr Lateef Fagbemi, both
Senior Advocates of Nigeria, filed the suit on
behalf of the states.
The states also enjoined the Supreme Court to,
among other prayers, declare the practice as
violating provisions of Sections 88 and 162 of the
1999 Constitution of the Federal Republic of
Nigeria.


www.thisdaylive.com/articles/scourt-to-hear-states-case-on-fuel-subsidy-financing-dec-8/190756/

The Supreme Court has slated December 8 for
hearing in a suit filed by the governors of the 36
states of the federation against the Federal
Government challenging the manner of deduction
of fuel subsidy funds from crude oil proceeds.
The governors, who sued through their respective
Attorneys-General described as “unwholesome
and unconstitutional” the practice of deducting the
fuel subsidy fund and other expenditure from the
oil proceeds before it is paid into the federation
account.
They claim that their various states had been
shortchanged through the deductions by the
Nigerian National Petroleum Corporation on the
instruction and authority of the Federal
Government.
They also argue that the practice, which they urge
the apex court to stop, had led to inaccuracies in
the oil revenue remitted to the federation account.
The plaintiffs sued the Federal Government
through the Attorney-General of the Federation,
Mr. Mohammed Adoke, and joined the National
Assembly as the second defendant.
They had instituted the suit marked SC/149/2012
with the Supreme Court as its original jurisdiction
(court of commencement) in 2012.
But both the Attorney General of the Federation
represented by Mr. Taiwo Abidogun and the
National Assembly represented by Mr. Ken
Ikonne, only regularised the filing of their
statements of defence and notices of preliminary
objection during the court proceedings of
September 23, 2014.
Through their lawyers, Mr. Joseph Daudu and
Chief Lateef Fagbemi, both Senior Advocates of
Nigeria, the plaintiffs are urging the Supreme
Court to, among other prayers, declare the
practice as violating provisions of sections 88 and
162 of the 1999 Constitution of the Federal
Republic of Nigeria.
They also seek, “a perpetual order of injunction
retraining the Federal Government of Nigeria by
itself, servants, agents privies and those taking
instruction from it from making any further
deductions from the amount standing to the credit
of the federation account for the purpose of
funding the payment of fuel subsidy claims or any
other purpose whatsoever, except those
authorized by section 162 of the 1999
Constitution of the Federal Republic.”
They are also praying for an order directing the
Attorney-General, Mr. Mohammed Adoke of the
Federation to on behalf of the Federal Government
“give account of all subsidy claim deducted from
the federation account from 2007 till date”.
Their statement of claim reads in part, “The
plaintiffs aver that there are inaccuracies in the
crude oil and gas revenues remitted to the
federation account by the Nigerian National
Petroleum Corporation caused by wrongful
deductions at source by the NNPC to fund her
operation.
“The plaintiffs aver that as a matter of practice,
subsidy claims ought to be remitted to the NNPC
from the Petroleum Support Fund by the Federal
Ministry of Finance based on claims from oil
marketers approved by the PPPRA.
“However, NNPC’s practice is to remit to the
federation account, amount payable for domestic
crude less subsidy claim. The NNPC then
requests the Federal Ministry of Finance to pay the
amounts due to subsidy claim back in to the
Federation Account being the balance cost of the
domestic crude.
“According to a report of the Federal Ministry of
Finance dated November 22, 2010, titled, “The
Interim Report on the Process of Forensic Review
of NNPC” the implication of this unconstitutional
practice is that the actual remittance of proceeds
for domestic crude sales to the Federation
Account is far less than the amount expected.”
The matter was on the September 23 adjourned
till December 8 specifically for the hearing of the
plaintiff’s motion for direction on time in which
parties will file and exchange their respective
briefs.
The Attorney-General of the Federation and the
National Assembly had on September 23, moved
their respective motions for extension of time to
file their statement of defence and also to enter
conditional appearance.
They also filed notices of preliminary objection in
which they argue that the Supreme Court lacks
jurisdiction to hear the matter under its original
jurisdiction.
They contend that the appropriate court to
institute the suit is the Federal High Court since
the deductions the plaintiff are challenging were
made by the NNPC which is a federal agency.
They add that the matter was statute barred on
the grounds that the suit was only instituted in
2012 while it is challenging the deductions made
in 2007, 2008, 2009, 2010 and 2011.
They also argue that claims of the plaintiffs do not
disclose any cause of action against them.


www.punchng.com/news/govs-battle-fg-at-scourt-over-fuel-subsidy-deductions/

I believe this suit was before the extinction of NGF. How will this pan out? Now there are two factions. The lawyers representing the states are Gov. Amaechi's lawyers. Most likely his faction is championing this course. The SC needs to interpret definitely.