Court Orders FG To Pay Delta Govt. $1.6b Derivative Fund Arrears

Court Orders FG To Pay Delta Govt. $1.6b Derivative Fund Arrears

A Federal High Court sitting in Abuja has ordered the Federal Government to pay $1.638 billion to the Delta State Government being as 13 percent derivative sum due as arrears of revenue payable to the oil-rich state.

Justice Donatus Okorowo, while delivering the judgment, held that being a suit instituted to recover revenue accruing to the state government, it qualified for the undefended list.

Okorowo ruled that the development made the court to declare the plaintiff’s case as “unchallenged.”
While the Attorney-General of Delta State is the plaintiff, the Attorney-General of the Federation (AGF) is the sole defendant in the suit.

The plaintiff, in the suit marked: FHC/ABJ/CS/660/2012 and filed on July 12 by his counsel, Ken Njemanze, urged the court to compel the AGF to pay five per cent of $50 billion recovered as additional revenue accrued to the Nigerian government.

Justice Okorowo dismissed the AGF’s preliminary objections challenging the court’s jurisdiction to entertain the suit as well as the mode in which the case was instituted as ‘undefended list.’

Okorowo had, in an ex-parte application on July 22, ruled that the “plaintiff’s writ of summons be marked and placed on the undefended list.” The judge, therefore, granted all the reliefs of the Delta State Government.


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