The Supreme Court of Nigeria has struck out a suit filed by the 36 state governments and the Nigeria Governors’ Forum (NGF) against the Federal Government over the alleged misappropriation of recovered looted funds.
In a unanimous judgment delivered on Friday, a seven-member panel of the apex court held that the case, marked SC/CV/395/2021, was improperly filed before the Supreme Court. The lead judgment, authored by Justice Chidiebere Uwa and read by Justice Mohammed Idris, ruled that the matter falls under the jurisdiction of the Federal High Court, not the Supreme Court.
The plaintiffs had accused the Federal Government of unlawfully diverting over ₦1.8 trillion in cash and non-cash assets recovered between 2015 and 2021, which they claimed should have been paid into the Federation Account as required by the Constitution.
The state governments alleged that the FG, instead of remitting the recovered loot to the Federation Account, had funneled the funds into the Consolidated Revenue Account (CRA) and other unauthorized accounts, violating Sections 162(1), 162(10), and 80 of the 1999 Constitution.
According to the suit, the FG had reportedly recovered approximately ₦1.83 trillion, 167 properties, 450 vehicles, 300 trucks and cargoes, and 20 million barrels of crude oil through various anti-corruption and law enforcement agencies, including the EFCC, ICPC, Nigerian Police, and the Office of the Attorney General of the Federation.
The plaintiffs challenged the constitutionality of the Asset Recovery and Interim Forfeiture Recovery Accounts created by the FG, arguing that these accounts contradicted constitutional provisions and lacked the legal basis to hold such funds.
They had asked the court to:
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Declare the recovered assets as revenues of the Federation to be shared among federal, state, and local governments;
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Compel the FG to remit the assets to the Federation Account;
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Order an audit of all recovered assets not yet accounted for;
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Direct the Revenue Mobilisation, Allocation and Fiscal Commission (RMFAC) to design a formula for equitable distribution.
However, the apex court declined to entertain the case, stressing that it lacked original jurisdiction to hear the matter. The ruling effectively nullifies the plaintiffs’ demands and redirects any future legal action to the appropriate lower courts.
The judgment marks a significant legal setback for the states in their effort to hold the Federal Government accountable over transparency in the management of recovered loot.
