Court orders FG to pay Delta $1.6bn derivative arrears

A Federal High Court in Abuja on Monday ordered the Federal Government to pay $1,6 billion to the Delta State.

The court said it was the arrears of 13 per cent derivation fund payable to the oil-rich state. The judgement was delivered by Justice Donatus Okorowo.

The court granted all the reliefs sought by plaintiff, stressing that the suit, being an action instituted to recover revenue accruing to the Delta State government, qualified for the undefended list.

Delta State in the suit marked FHC/ABJ/CS/660/2012 filed through Chief Ken Njemanze, SAN, had urged the court to compel the Attorney-General of the Federation, AGF, to pay five per cent of $50billion recovered as additional revenue that accrued to the Nigerian government.

It prayed the court to, “direct the Defendant (AGF) to pay the sum of $ 1,638,396,277.00 (One billion, six hundred and thirty-eight million, three hundred and ninety-six thousand, two hundred and seventy-seven United States dollars) being the 13% derivative sum due as arrears of revenue payable to Delta State as assessed.

“A consequential order of this court compelling the defendant to net off and pay five per cent of the said sum as per clause 3.0(v) of the defendant’s letter of engagement dated 12 April, 2018 and clause 3.0(v) the defendant’s further letter of engagement dated 19 November, 2018, pursuant to clause lll(d) of the terms of settlement made the (consent) judgement by the Supreme Court”

It also demanded “10% post-judgment interest at court rate on the said $ 1,638,396,277.00 (One billion, six hundred and thirty-eight million, three hundred and ninety-six thousand, two hundred and seventy-seven United States dollars) to the plaintiff until final liquidation thereof.”

However, the AGF, in a counter-affidavit he filed before the court, sought the dismissal of the suit which he said lacked competence.

In the affidavit that was deposed to by one Thomas Etah, a staff of the Federal Ministry of Justice, Abuja, the AGF, argued that Delta State was not a party in the terms of settlement in a similar revenue derivation suit between the Akwa-Ibom, Bayelsa and Rivers State governments delivered by the Supreme Court.

He contended that it would not serve the interest of justice to grant the Plaintiff’s claim against the Defendant without full hearing of the matter.

“That the terms of settlement in question have been entered as judgement of the court between the parties before the court,” the AGF argued.

In a preliminary objection dated September 22, 2021, the AGF, further challenged jurisdiction of the Federal High Court to entertain the suit.

He argued that under Section 251 of the 1999 Constitution, as amended, the High Court, lacked the powers to adjudicate between a State and the Federation.

However, in his judgement, Justice Okorowo dismissed the objection, even as he entered judgement in favour of the Plaintiff.

 

“The suit succeeds on its merit and all the reliefs sought by Plaintiff. Judgement is hereby entered on the claims of the plaintiff in this case. This is the order of this court,” Justice Okorowo said.