The court holds that institutions or bodies, such as the Nigeria Police Trust Fund not listed in the Nigerian constitution cannot be funded directly from the Federation Account.The Federal High court in Abuja, on Wednesday, barred the federal government from further making deductions from the federation account to fund the Nigeria Police Trust Fund or other institutions not listed in the Nigerian constitution.
The Federation Account Allocation Committee had announced at its April 2020 meeting that the deductions were to commence in earnest.-led Rivers State Government filed its suit on May 20, 2020 to challenge the planned deductions and the law on which it was premised. It urged the court to order a refund of the money deducted from the Federation Account and paid into the NPTF since when it was informed about it at the FAAC meeting of April 2020.Delivering judgement in the suit, Ahmed Mohammed, the judge, declared as “illegal, unlawful and unconstitutional,” the direct allocations made so far by the federal government from the federation account to fund the NPTF.
The court also held that section 4 of the Nigeria Police Trust Fund Act 2019 relied upon by the federal government to justify the unlawful deductions from the federation account is inconsistent with section 162 of the 1999 Constitution which recognises only the federal, states and local governments. It said failure to pay such funds into the federation account and rather into the NPTF has deprived it of substantial revenue accruable to the state as taxes.While upholding that the plaintiff’s suit, the judge ordered that the funds belonging to Rivers State but were used to fund the NPTF by the federal government should be refunded to the state.
The court also agreed with Mr Daudu that the federal government was completely wrong in the interpretation given to section 4 of the Nigeria Police Trust Fund Act to the effect that the Nigerian Police was established for the federal government alone and as such the funding is solely on the shoulder of the federal government.
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