Supreme Court Dismisses 36 States’ Suit Against FG Over Recovered Loot

In a landmark ruling this week, the Supreme Court of Nigeria struck out a high-profile lawsuit filed by all 36 state governments against the Federal Government concerning the management of recovered looted funds. The apex court ruled that it lacked the jurisdiction to hear the case, delivering a significant legal blow to the states’ efforts to challenge federal control over the controversial assets.

The suit, which was filed under SC/CV/395/2021, accused the Federal Government of diverting over ?1.8 trillion in recovered cash and ?450 billion in assets between 2015 and 2021. The states, through the Nigeria Governors’ Forum (NGF), claimed the funds were not paid into the Federation Account as constitutionally mandated, but instead funneled into accounts like the Consolidated Revenue Fund.

At the heart of the lawsuit was the interpretation of Sections 162(1) and 162(10) of the 1999 Constitution, which the states argued require all revenues—including recovered assets—to be paid into the Federation Account. This would allow for equitable distribution among the federal, state, and local governments.

In their argument, the states demanded not only a full account of all recovered assets but also a directive compelling the Federal Government to remit every kobo into the Federation Account.

Reading the lead judgment prepared by Justice Chidiebere Uwa, Justice Mohammed Idris declared that the Supreme Court had no original jurisdiction over the matter. The Court held that such revenue-related disputes fall under the exclusive jurisdiction of the Federal High Court, thereby striking out the suit.

The ruling came from a seven-member panel of justices and was unanimous.

Legal analysts have called the decision a “procedural victory” for the Federal Government, noting that the judgment does not speak to the substance of the states’ claims but only to the court’s jurisdiction. Governors have been urged to refile their case at the Federal High Court if they wish to continue their challenge.