At Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the oil producing states in Nigeria for “failure to record the expenditure of the N625 billion oil derivation payment recently paid by the Federal Government, including the details and location of the projects implemented with the money.”
The Federal Government recently paid N625.43 billion oil derivation money to Abia, Akwa Ibom, Bayelsa, Delta, Edo, Rivers, Ondo, Imo and Cross River governors. The payment includes 13 percent oil derivation, subsidy, and SURE-P refund. Payback dates range from 1999 to 2021.
In a suit number FHC/ABJ/CS/2371/2022 filed last Friday at the Federal High Court, Abuja, SERAP asked the court to “direct and compel the governors to disclose and disseminate details on the spending of oil derivation refunds, subsidies, and return SURE-P.”
SERAP also asked the court to “force President Muhammadu Buhari to direct the anti-corruption agency to thoroughly investigate the spending of public funds collected by the governor, and if appropriate, ensure the prosecution of the perpetrators of corruption, and the recovery of the proceeds of corruption.”
In the suit, SERAP argued that, “The 1999 Nigerian Constitution [as amended]The Freedom of Information Act, and the African Charter on Human and Peoples’ Rights impose transparency obligations on governors to disclose the payment of oil derivation refunds, subsidies, and SURE-P refunds.
SERAP also argued that, “State governors cannot hide on the grounds that the Freedom of Information Act does not apply to their state. Governors also have a clear legal obligation to provide such information, as provided by the provisions of the Nigerian Constitution and the African Charter on Human Rights Man and the People.
According to SERAP, “It is in the public interest and in the interest of justice to grant this application. Nigerians have the right to information which is constitutionally and internationally recognized.
SERAP also argues that, “Constitutional principles of democracy provide the basis for the right of Nigerians to know the details of the spending of public funds. The right of citizens to know promotes openness, transparency, and accountability which is essential to the country’s democratic order.
SERAP also argued that, “The public interest in obtaining information about the costs associated with refunds outweighs other interests. The supervision provided by public access to these details will be an important check on the activities of the governors, and help prevent the abuse of public trust.
The lawsuit filed on behalf of SERAP by its lawyers Kolawole Oluwadare and Valentina Adegoke, read in part: “The Nigerian Constitution, the Freedom of Information Act, and the country’s international obligations are based on the principle that citizens should have access to information about government activities.”
“Revealing details of the spending of oil derivation refunds, subsidies and SURE-P refunds will enable Nigerians to scrutinize, and monitor the spending of refunds to ensure that the money is not mismanaged, diverted or stolen.”
“Effective operation of representative democracy depends on people who can scrutinize, discuss and contribute to government decision-making, including on spending returns of oil derivation funds.”
“To do this, they need information to participate more effectively in the management of public funds by state governments.”
“Publishing details of how refunds are spent will ensure that those with public responsibilities are accountable to the public for carrying out their duties including the management of refunds.”
“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights and article 19 of the International Covenant on Civil and Political Rights guarantee everyone the right to information, including on how to recover the oil derivation spent.
“By a combined reading of the provisions of the Nigerian Constitution, the Freedom of Information Act 2011, and the African Charter on Human and People’s Rights, which apply throughout Nigeria, there is an obligation of transparency imposed on state governors to publish details of expenditure on the return of oil derivation funds .”
“On the 13 per cent derivation fund, Abia State received N4.8bn; Akwa-Ibom received N128bn; and Bayelsa got N92.2bn. Cross River got a refund of N1.3bn; Delta State got N110bn; Edo State got N11.3bn; Imo State, N5.5bn; Ondo State, N19.4bn; and Rivers State received 103.6bn.
“On the 13 percent derivation fund on the cut made by the NNPC, Abia State received N1.1 billion; Akwa-Ibom, N15 billion; Bayelsa, N11.6 billion; Cross River, N432 million; Delta State, N14.8 billion; Edo, N2.2 billion; and Imo State, N2.9, billion. Ondo State got N3.7 billion while N12.8 billion was paid to Rivers State.
“The states also received N4.7 billion each, with a total of N42.34 billion as refunds of withdrawals for subsidies and SURE-P from 2009 to 2015. The Federation Account also paid N3.52billion each as refunds to local government councils on subsidy withdrawals .and SURE-P from 2009 to 2015.
No date has been set for the hearing of the suit.
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