The Supreme Court of Nigeria has dismissed a suit instituted by the 36 state governments, through the Nigeria Governors’ Forum, challenging the Federal Government’s handling of recovered assets.
The decision was delivered by a seven-member panel of the Court in Suit No. SC/CV/395/2021. The lead judgment was written by Justice Chidiebere Uwa and delivered by Mohammed Idris.
In the suit, the states alleged that recovered assets and funds, estimated at about ₦1.8 trillion, were not paid into the Federation Account but were instead transferred into the Consolidated Revenue Fund. The plaintiffs relied on provisions of the Constitution of the Federal Republic of Nigeria and the Finance (Control and Management) Act to contend that the handling of the assets was unconstitutional.
In its ruling, the Supreme Court held that the claims did not fall within its original jurisdiction under Section 232(1) of the Constitution. The Court stated that its original jurisdiction is limited to direct justiciable disputes between the Federation and the states and does not extend to matters requiring factual determination on administrative or revenue-management procedures.
The Court further held that disputes relating to revenue administration and financial procedures involving the Federal Government fall within the jurisdiction of the Federal High Court. On that basis, the panel unanimously dismissed the suit for want of jurisdiction, without determining the substantive merits of the claims.
