S’Court strikes out states’ suit asking FG to account for gas earnings 

The Supreme Court, on Friday, struck out a suit instituted by the 36 state governments seeking to, among others, compel the Federal Government to account for earnings from the sale of Liquefied Natural Gas, natural gas liquids and other related products since 1999.

A seven-member panel of justices of the apex court presided over by Justice Uwani Abba-Aji upheld the preliminary objection of the Attorney-General of the Federation, Lateef Fagbemi, against the suit.

In a unanimous judgment, the panel held that the court lacked the jurisdiction to hear and determine the suit, adding that the subject of the case had been previously decided by the Supreme Court in its earlier decision in the case of the Attorney-General of Bauchi State against the AGF.

In the lead judgment delivered by Justice Mohammed Garba, the court held that the suit amounted to an attempt to re-litigate issues already decided by the Supreme Court in the ‘AG, Bauchi v. AGF case,’ which relates to the revenues accruable to the FG, and which are payable into the Federation account.

Meanwhile, mentioned in the suit as sole respondent are the AGF and the 36 state governments as appellants.

The court proceeded to strike out the suit for want of jurisdiction to hear the case as presently constituted.

All 36 states had prayed for the following reliefs to be granted by the court.

“An order directing the Federal Government of Nigeria to render an accurate and true account of the total income/profit/dividend, etc., earned by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc., through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation since October 9, 1999, when the first cargo of liquefied natural gas left the shores of Nigeria till date; and to pay same into the Federation account for appropriation and redistribution to the 36 states of the Federation and the Federal Capital Territory in the manner prescribed in Section 1 of the Allocation of Revenue (Federation Accounts, Etc.) Act CAP A15 LFN 2004.

“An order directing the Federal Government of Nigeria to immediately pay the sum of $17 billion or any other sum paid as dividend up to May 17, 2020, and thereafter, as accruing income/profit/dividend etc., earned or to be earned by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc., through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation, into the Federation account immediately upon receipt, for appropriation and redistribution in the manner prescribed in Section 1 of the Allocation of Revenue (Federation Accounts, Etc.) Act CAP A15 LFN 2004,” among other reliefs.