Attorney-general Of Ogun State & Ors. V. Attorney-general Of The Federation (2002)

LAWGLOBAL HUB Lead Judgment Report

U. ONU, J.S.C. 

The five suits considered together herein are so considered because of. their similarity as to facts and for facility and convenience of trial. Hence, I have decided to consolidate them, as I shall shortly demonstrate. Be that as it may, I wish to commence their consideration by observing that as the Lagos State Attorney-General’s case is more comprehensive albeit that the other states are asking for more or less the same, I will dwell more on the Lagos State case whilst not forgetting to treat the other states’ matters in due course. In dealing with the reliefs claimed in all these cases one cardinal point that remains uppermost in my mind, however, is the fact that our decision in this court reported as Attorney-General, Federation v. Attorney-General, Abia State & 35 Ors. (No.2) (2002) 6 NWLR (Pt. 764) 542 SC, has answered most questions in the present case. That case having thus answered many points raised in the case in hand, what remains to be considered will be confined within a narrow compass.

In the Lagos State case, the reliefs claimed by the Attorney-General in his amended statement of claim, which I regard as the fulcrum upon which this action revolves, are pleaded in paragraph 18 thereof thus:

“18.WHEREOF the plaintiff claims the following RELIEFS:

1. A declaration that it is illegal and unconstitutional being contrary to section 162(3) of the constitution of the Federal Republic of Nigeria 1999 for the defendant to make deductions as a first line charge on the federation account to fund the following to wit:

(a) NNPC joint venture projects; .

(b) NNPC priority projects;

(c) Central Bank of Nigeria (CBN) priority projects;

(d) The National Judicial Council;

(e) Foreign Debts incurred by, the Federal Government;

(f) 1% of the Federation Account said to be statutory allocation to the Federal Capital City, Abuja.

2. A declaration that the defendant is under section 162(3) of the constitution of the Federal Republic of Nigeria, 1999 to distribute the amount standing to the credit of the federation account between the federal, state and local government councils and to no other party or fund.
3. A declaration that the defendant is not entitled to make any deductions whatsoever from the federation account before the amount in the account is distributed among the federal, state and local government councils on the terms and in the manner prescribed by the National Assembly, and that any prior deductions before such distribution as being made at present by the defendant is illegal and unconstitutional being contrary to section 162(3) of constitution of the Federal Republic of Nigeria, 1999.
4. A declaration that on a proper construction and interpretation of sections 80, 81 and 162 of the constitution of the Federal Republic of Nigeria, 1999 the payment of salaries of Judicial Council is not a charge on the federation account and it is illegal and unconstitutional to deduct those salaries directly from the federation account as first line charge or at all.
5. A declaration that the Federal Government is mandatorily obliged by the combined effect of section 162(i) and (iv) of the constitution of the Federal Republic of Nigeria 1999 to pay into the federation account all the proceeds and income, save those exempted under section 162(i), accruing from the privatisation of government enterprises, from stamp duties, capital gains tax and other income accruing to or derived by the Federal Government from any other source.
6. A declaration that it is unconstitutional and illegal for the defendant whether by itself, its officer, agents, privies, or otherwise howsoever to withhold and not pay into the federation account proceeds and/or income, save those exempted under section 162(i), accruing from the privatisation of government enterprises and other income accruing to or derived by the Federal Government from any other source.
7. A declaration that the defendant is not entitled within the proper meaning of section 162(5), (6) and (8) of the constitution of the Federal Republic of Nigeria, 1999 to pay the amount standing to the credit of the local government councils in the federation account directly to the local government councils and that such payments by the defendant is illegal and unconstitutional.
8. An order directing the Federal Government of Nigeria, whether by herself, her officers, agents, servants, and/or privies or otherwise howsoever to pay such sums or amount as are standing to the credit of the local government councils in the federation account from time to time to the plaintiff for the benefit of the states and local government councils in accordance with the provisions of section 162(5) of the constitution of the Federal Republic of Nigeria, 1999.
9. A declaration that the deduction of funds from the federation accounts by the defendant to fund and maintain a stabilisation account is illegal and unconstitutional.
10. A declaration that it is illegal and unconstitutional for the defendant to deduct any sums of money from the federation account for the purpose of servicing foreign or external debts incurred by the government.
11. A declaration that section 1(d) (i – v) of the allocation of revenue (federal account, etc.) cap.16, laws of the Federal Republic of Nigeria as amended by decree no.106 of 1992 is inconsistent with section 162(3) of the constitution of the Federal Republic of Nigeria, 1999 and is to that extent invalid, unconstitutional, null and void and of no effect.
12. A declaration that section 3 and 6(1), (2) and (3) of the allocation of revenue (federation account) act, cap. 16, laws of the Federal Republic of Nigeria as amended by decree no. 106 of 1992 are inconsistent with section 162(5), (6) and (8) of the constitution of the Federal Republic of Nigeria, 1999 and are invalid, unconstitutional, null and void and of no effect.
13. An order directing the federal government to render a full and proper account of all the monies properly payable into the federation account and or mandatorily required to be paid into the federation account as stipulated by section 162(1) and (10) of the constitution of the Federal Republic of Nigeria, 1999 from 29th May, 1999 till judgment.
14. An order directing the Federal Government of Nigeria to pay to the plaintiff all sums properly found due and unpaid to the plaintiff in respect of its share from the federation account on the proper and lawful distribution amongst the states of the appropriate and true amount standing to the credit of states in the federation account.
15. An order of injection restraining all officers, servants and functionaries of the government of the Federation Republic of Nigeria or any other public officer whomever and however from keeping.
16. An order of injunction restraining the Federal Government of Nigeria whether by herself, her servants, and/or agents or otherwise howsoever from breaching the clear provisions of section 81 (3) and 162 of the constitution.
17. An order of injunction restraining all officers, servants and functionaries of the government of the Federal Republic of Nigeria or and other public officer of the said government whomsoever and howsoever from deducting or taking any sums of money whatsoever from the federation account for the purpose of funding any project or effecting any payment whatsoever except for the purpose of distributing such monies amongst the federal, state and local government as provided by law.
18. An order of injunction restraining all officers, servants and functionaries of the government of the Federal Republic of Nigeria or any other public officer of the said government whomsoever and howsoever from withholding and not paying into the federation account all the revenue collected by the government of the Federal Republic of Nigeria from any source whatsoever.
19. An order of injunction restraining the Federal Government of Nigeria whether by its officers, servants and functionaries whomsoever and howsoever from breaching the provisions of section 162 of the constitution of the Federal Republic of Nigeria, 1999.”

A 13 paragarph statement of defence was filed on behalf of the defendant, thus joining issues with the plaintiff, as follows:

“SAVE AND EXCEPT as is hereinafter specifically admitted, the Honourable Attorney-General of the Federation and Minister of Justice (hereinafter referred to as the defendant) denies each and every allegation of fact contained in the plaintiff’s statement of claim as if same were specifically set out and traversed seriatim:

1. The defendant admits paragraphs 1,2 and 3 of the plaintiff’s statement of claim.
2. The defendant admits paragraph 4 of the statement of claim only to the extent that the President shall table before the National Assembly proposals for revenue allocation, upon receipt of advice from the Revenue Mobilisation, Allocation and Fiscal Commission.
3. The defendant admits paragraph 5 of the statement of claim.
4. The defendant admits paragraph 6 of the statement of claim only to the extent that the Federation Account Allocation Committee meets monthly to ensure that allocation made to the states from the federation account are promptly and fully paid into the treasury of each State on the basis and terms prescribed by the Allocation of Revenue (Federation Account, etc) Act, as amended, and the 1999 constitution.
5. The defendant in further rebuttal of the averments in 6 (i – v) of the statement of claim state as follows:

(i) That any amount standing to the credit of the federation account shall be distributed among the federal and state government councils in each state on such terms and in such manner as may be prescribed by the National Assembly.

(ii) The distribution of any amount standing to the credit of the federation account is subject to the prescription of the terms and manner of such distribution by the National Assembly, and the latter has not prescribed such terms and manner.