Oil Revenue: Big Blow as PDP Governor Floors FG in Court, to Get $1.6bn

Oil Revenue: Big Blow as PDP Governor Floors FG in Court, to Get $1.6bn

  • The Federal High Court in Abuja has ruled in favour of Delta state in its case with the federal government over the Production Sharing Contracts
  • The government is to pay the state the sum of $ 1,638,396,277 as oil revenue in its verdict on Monday, November 1
  • This came after the court dismissed Attorney-General of the Federation Abubakar Malami's objection

The Federal High Court, Abuja, on Monday, ordered the federal government to pay $1.6 billion oil revenue to the Delta state government.

Uwaezuoke Okorowo, the judge, ordered the federal government to pay the money as a 13 per cent derivative sum due as arrears of revenue payable to the state, Premium Times reports.

Governor Okowa
The court ruled in favour of the Delta state government on Monday, November 1 (Photo: Governor Ifeanyi Okowa)
Source: Facebook

The state government had predicated its case on a 2018 verdict of the Supreme Court ordering the federal government to recover all revenues lost to oil exploring firms due to the wrong profit-sharing formula enshrined in the Production Sharing Contracts (PSC) since 2003, This Day added.

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The Delta state government's lawyer, Ken Njemanze, a Senior Advocate of Nigeria (SAN), claimed that its client's share of the 13 per cent derivative of the expected revenue is $1,638,396,277.

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Giving the verdict on Monday, Justice Okorowo dismissed AGF Abubakar Malami's preliminary objection and granted all the prayers sought by the state.

He said:

“The suit succeeds on its merit and all the reliefs sought by the plaintiff are granted. Judgment is hereby entered on the claims of the plaintiff in this case. This is the order of this court."

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Meanwhile, Okowa had called on the federal government to use 25 per cent of funds expended on fuel subsidy to provide health insurance for vulnerable Nigerians.

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A statement sent to Legit.ng by the Delta state government noted that Okowa made the call on Friday, March 19, when he received the minister of state for health, Dr. Olurunnimbe Mamora, who visited him at Government House, Asaba.

Okowa said that the federal government spent lots of money in subsidizing fuel for the rich, without consideration for the vulnerable in the society.

Source: Legit.ng

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