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Excess Crude Account: Abuja lawyer drags FG, 36 states to court

*Insists Account is fraudulent

*Says NASS, presidency breached constitution

By Malachy Uzendu

Human Rights Lawyer, Barr. Johnmary Chukwukasi Jideobi, has dragged the Federal Government and the 36 states of the federation to court for allegedly violating laws pertaining the Federation Account.

In particular, the lawyer frowns at the enactment of the Nigerian Sovereign Investment Authority (Establishment, etc) Act, 2011, into which illegal deductions known as Excess Crude Account, is paid.

Listed as defendants in the suit drawn on his behalf by Barr. Gabriel Eze are: the President of the Senate, Sen. Ahmed Lawan; Speaker of the House of Representatives, Hon. Femi Gbajabiamila; the National Assembly, the Managing Director, Nigerian Sovereign Investment Authority; Attorney-General of the Federation and Minister of Justice (AGF); the Minister of Finance, and the 36 state governments.

The Originating Summons drawn up on the matter listed five issues for determination, and asked the Federal High Court for 12 consequential orders.
Barr. Jideobi had asked: “Whether the Federal Government of Nigeria (represented by the 7th Defendant (AGF) herein) has any constitutional power, executive or otherwise, to establish the account called “Excess Crude Account” or any other account howsoever named other than the one contemplated by Sections 80 and 162 of the amended 1999 Constitution [which is the Federation Account] into which shall be paid all revenues collected by the Government of the Federation?

“Whether the National Assembly of Nigeria is possessed of the requisite legislative competence to authorize a departure from or violation of the peremptory provisions of Sections 80 and 162 of the Constitution by enactment of an Act?

“Whether it is a valid exercise of the legislative powers of the National Assembly to have enacted Sections 4, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52 of Nigeria Sovereign Investment Authority (Establishment etc) Act, 2011 which their aggregate intendment is to cut off some of the revenues accruable to the Federation Account by diverting same to fund the NSIA in the face of the immutable Section 162 (1) & (3) of the Constitution” that insists that all federal revenues must be paid into the Federation Account.

He also asks whether the National Assembly “breached Sections 80 and 162 of the Constitution and exceeded its legislative jurisdiction by the enactment of Sections 4, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52 of the NSIA Act, 2011.

Also “whether in view of Sections 7 and 162(3), (6) & (8) of the Constitution, the National Assembly is seized of the legislative competence to validly dictate to the Local Governments in Nigeria how to manage their accrued revenue from the Federation Account by way of investment as represented by an enactment of NSIA Act?”

He therefore prays for a declaration that the Federal Government has no constitutional power, to establish the Excess Crude Account or any other account other than the one contemplated by Sections 80 and 162 of the Constitution, the Federation Account, into which shall be paid all revenues of the Federation.

He also prayed the court to make a declaration that the National Assembly has no legislative powers to authorize a departure from or violation of the provisions of Sections 80 and 162 of the Constitution.

Equally, he asked the court to “declare as an invalid exercise of the legislative powers of the National Assembly to enact Sections 4, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52 of th4e NSIA Act, which have cut off some of the revenues accruable to the Federation Account by diverting same to fund the NSIA.

He said the National Assembly breached Sections 80 and 162 of the Constitution and “exceeded its legislative competence by the enactment of Sections 4, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52 of the NSIA Act, 2011”.

He also prays the curt to nullify Sections 4, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52 of the NSIA Act, for being in violation of Sections 4, 7, 80 and 162 of the Constitution.

He prayed for an order to compel the Federal Government “to sweep all the monies in the Excess Crude Account into the Federation Account to be shared between the Federal Government, the 36 States of the Federation, the Federal Capital Territory Administration, all the Local Governments and Area Councils in Nigeria, in line with Sections 80 and 162 of the Constitution”.

He also prayed for an order closing down the Excess Crude Account and to dispose of all the assets and investments of the NSIA, into the Federation Account in line with Sections 80 and 162 of the Constitution and a stop to the National Assembly from further enacting any legislation to circumvent Sections 80 and 162 of the 99 Constitution.

He maintained that all federal revenue must all revenues accruing to the Federal Government be paid into the Federation Account/Consolidated Revenue Fund (CRF) Account, otherwise known as the Treasury Single Account (TSA).

He further argued that any diversion on a decision purportedly passed by National Economic Council is unknown to the constitution and therefore illegal.

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