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Court halts sharing of derivation funds to oil producing states

By Suoyo Ekubo 

A Federal High Court sitting in Abuja has ordered the Accountant General of the Federation to immediately halt the distribution of more than N1 trillion due to oil producing states, pending the determination of the suit before it.

The court presided over by Justice A R. Mohammed, in an interim injunction, held that the distribution of the derivation funds without the indices of the Revenue, Mobilisation, Allocation and Fiscal Commission (RMAFC) was injurious to the applicant, which is the Imo State Government.

The Imo state attorney general had, in a suit No FHC/ABJ/CE/415/2022, against RMAFC and others, challenged the distribution of the said funds without unambiguous indices by RMAFC as provided by the Nigerian Constitution.

In his submission before the court, counsel to the Imo State government, Chief Olusola Oke, argued on the need to protect his client, pending the determination of the suit.

After granting the ex parte order, Justice Mohammed ordered Imo state to join other oil producing states as respondents to the suit.

He consequently adjoined the matter to June 15, 2022 for hearing of the motion on notice.

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