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Adamawa, Oyo State Files Lawsuit Against Federal Government Over Federation Account Deductions

The 9am news Nigeria and Ogasabi report that both states have filed separate suits seeking the Supreme Court’s interpretation of Section 162 (1), (2), and (3) of the constitution concerning revenue distribution.
9am news nigeria

The Adamawa State Government and its Oyo State counterpart have taken legal action against the federal government, accusing it of making unauthorized deductions from the federation account. The 9am news Nigeria and Ogasabi report that both states have filed separate suits seeking the Supreme Court’s interpretation of Section 162 (1), (2), and (3) of the constitution concerning revenue distribution.

In Suit Number SC/CV/547/2024, Oyo State, represented by Chief Bolaji Ayorinde SAN, asks the apex court to prevent the federal government from making further deductions from the federation account except for constitutionally mandated distributions. The Oyo State suit also demands that the federal government distribute all funds credited to the state and its local government councils according to the provisions of Section 162(4) and (5) of the constitution.

The state is seeking several declarations, including that any deductions from the Oyo State Government’s funds in the federation account are unconstitutional. Additionally, the suit calls for an order directing the federal government to pay and distribute all sums standing to the credit of Oyo State without deductions, as prescribed by the National Assembly.

Ogasabi’s 9am news highlights that the Oyo State suit includes a 35-paragraph affidavit from Ayanniyi Taiwo Michael, Director of Treasury of Oyo State, who attests to the state’s entitlement to its full share of the federation account without encumbrances.

Similarly, Adamawa State has filed its suit asserting that the entire sum in the federation account must be distributed among all levels of government without unauthorized deductions. The 9am news Nigeria and Ogasabi report that Adamawa State demands strict adherence to the constitution in managing and distributing revenue, seeking a Supreme Court declaration that any unconstitutional deductions are void.

Both states emphasize that the federal government’s discretion in revenue management is limited to what the constitution expressly permits. Adamawa State seeks a strict interpretation of the constitution to prevent arbitrary deductions or withholdings by the federal government.

No date has been set for the hearing of these suits. The ongoing legal battle underscores the states’ efforts to ensure constitutional compliance in revenue distribution as reported by Ogasabi and the 9am news.

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