A Federal High Court in Abuja on Wednesday stopped the Federal Government from further making deductions from the Federation Account to fund its own agencies not listed in the 1999 Constitution for direct allocation.
The judge specifically held that Section 162 of the 1999 Constitution is clear and unambiguous to the effect that only the federal, state and local governments shall be allocated funds directly from the Federation Account. The judge, however, declined to extend a similar order of refund to the 35 remaining states on the grounds that they were not parties in the suit and that Rivers State as the plaintiff in the matter did not file it on behalf of others.
The Rivers State Government had in a suit marked FHC/ABJ/CS/511/2020 and instituted on its behalf by Daudu challenged the decision of the Federal Government allocating funds directly from the Federation Account to fund some of its agencies claiming that the decision violated Section 162 of the 1999 constitution.
Justice Mohammed said, “I have carefully perused the issues raised by the plaintiff and I agree that no other person or entity is permitted to benefit direct fund allocation from the Federation Account.
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