2 States Drag FG To Supreme Court Over Alleged Illegal FAAC Deductions—-Two states under the control of the People’s Democratic Party (PDP), Adamawa and Oyo states, have taken legal action against the Federal Government at the Supreme Court, challenging alleged unauthorised deductions from the federation account.
Each state is seeking clarification on Section 162 (1), (2), and (3) of the Nigerian Constitution concerning revenue distribution.
In Suit Number SC/CV/547/2024, Oyo State, represented by Chief Bolaji Ayorinde SAN, is requesting the Supreme Court to prohibit the federal government from making any deductions from the federation account for projects or payments, other than those mandated by the constitution for revenue distribution among federal, state, and local governments.
Oyo State is also asking for a directive to ensure that funds credited to the state and its local government councils are distributed as required by Section 162(4) and (5) of the Constitution.
The suit includes several declarations, such as:
“It is unconstitutional for the federal government to deduct or charge any funds credited to Oyo State in the federation account for any alleged debts or agreements.
The federal government lacks the constitutional authority to manage funds credited to Oyo State in the federation account before revenue distribution.
Any unilateral deductions by the federal government from the amounts due to Oyo State are illegal and void.”
Oyo State’s filing, supported by a 35-paragraph affidavit from the Director of Treasury, Ayanniyi Taiwo Michael, emphasizes that all funds allocated to the state from the federation account should be distributed without deductions.
The affidavit asserts that Oyo State’s entitlement to these funds is constitutionally protected and should be free of any charges or encumbrances.
Similarly, the Adamawa State government is arguing that all funds in the federation account must be distributed to all levels of government without unauthorized deductions. The state stresses that the President must adhere strictly to constitutional provisions in managing and distributing revenue.
Adamawa State is seeking a Supreme Court declaration that any deductions or withholdings by the federal government lacking constitutional backing are unconstitutional. The state emphasizes that the federal government’s authority to manage revenue is limited to what is explicitly allowed by the constitution.
No hearing date has been set for these cases.
