Breaking: Supreme Court Gives Verdict in 36 Governors' Suit Against FG

• The Supreme Court has struck out a suit filed by the Nigerian Governors' Forum and the 36 states against the federal government
• According to the suit, the governors are challenging the application of the federal government to recover looted funds
• The Supreme Court ruled that the governors had wrongly filed a suit which did not fall within its jurisdiction

The Supreme Court has dismissed the applications filed by 36 governors, their states and the Nigeria Governors' Forum (NGF), where they challenged the federal government's application to recover looted funds.

In a verdict on Friday, May 23, the Supreme Court's seven-member panel in a unanimous judgment held that the suit was wrongly filed before the apex court.

According to The Nation, the lead judgment was read by Justice Mohammed Idris, but was prepared by Justice Chidiebere Uwa. The Supreme Court held that the 36 states wrongly invoked its jurisdiction.

Why Supreme Court dismisses governors' suit

The Supreme Court held that the subject matter of the application marked SC/CV/395/2021 was within the Federal High Court's jurisdiction.

In the suit, the 36 state governments stated that “between 2015 and 2021 when the suit was filed, the FG has secured both international and municipal forfeiture, recovery and repatriation of “stolen assets” in the sum of NI,836,906,543,658.73, about 167 properties, 450 cars, 300 trucks and cargoes, and 20,000,000 barrels of crude oil worth over N450million,” which were not remitted as stipulated by the Constitution.

They accused the federal government of diverting the funds into the Consolidated Revenue Accounts (CRA) and other accounts, which were not recognised by the constitution, rather than using the Federation Account.

What is a CRA account?

The governors maintained that the CRA is the account, which was shared from the Federation Account by the federal government, where other earnings and funds that belong to specific state government are paid.

The plaintiffs added that federal earnings that should be paid into the CRAs included the receipts from the land revenue and federal government licences, earnings and sales, and administrative fees. Others are interests from federal government investments, Personal Income Tax of Armed Forces, rent of government property, repayments from state governments, and others.

They then argued that the establishment of the Asset Recovery Account and the Interim Forfeiture of Recovery Account were in contradiction of the provisions of the constitution. The ARA and the IFRA are accounts where revenue from the recovered assets is to be paid.

Tax Reform Bills divide Tinubu, 36 governors

Legit.ng earlier reported that President Bola Tinubu's tax reform bills before the National Assembly have reportedly divided the 36 governors in Nigeria.

The governors under the aegis of the Nigerian Governors Forum could not reach a resolution at the end of their meetings on Wednesday, December 11.

The northern governors have earlier voiced their opposition against the bills and asked lawmakers representing their states at the National Assembly to reject the proposal.

Source: Legit.ng