SERAP Sues Buhari Over Move To Borrow N895bn From Nigerians’ Dormant Accounts

Socio-Economic Rights and Accountability Project (SERAP) has
filed a lawsuit asking the Federal High Court in Abuja “to restrain
and stop President Muhammadu Buhari and the Federal Government from
borrowing an estimated N895bn of Nigerians’ money in the form of
their unclaimed dividends and balances in dormant accounts, under
the guise of the patently unlawful, unconstitutional, and
discriminatory legislation known as ‘the Finance Act, 2020.’”

The suit followed recent move by the Federal Government to take
over and borrow unclaimed dividends and dormant account balances
owned by Nigerians in any bank in the country. But the same
legislation explicitly excludes dormant official bank accounts by
all branches of government and their agencies.

In the suit number FHC/ABJ/CS/31/2021 filed last Friday, SERAP
is seeking: “an order of perpetual injunction restraining and
stopping President Buhari from demanding, taking over, borrowing,
and collecting Nigerians’ money in the form of their unclaimed
dividends and funds in dormant accounts or transferring and moving
the money into a trust fund known as ‘Unclaimed Funds Trust
Fund’”.

In the suit, SERAP is arguing that “the Federal Government
should not be allowed to borrow Nigerians’ money. Borrowing
unclaimed dividends and funds in dormant accounts owned by ordinary
Nigerians would negatively affect their right to an adequate
standard of living, and access to clean water, quality healthcare
and education.”

According to SERAP: “Despite Nigeria’s dwindling oil revenue,
the growing level of public debt, and widespread poverty, public
officers including the President, Vice President, governors and
their deputies, and members of the National Assembly have refused
to cut their emoluments, allowances and security votes. At the same
time, millions of Nigerians continue to bear the brunt of
mismanagement and corruption.”

Joined in the suit as Defendants are: Mr Abubakar Malami SAN,
Attorney General of the Federation and Minister of
Justice; the Senate President, Ahmad Lawan; the Speaker of
House of Representatives, Femi Gbajabiamila; and the Minister of
Finance, Budget and National Planning, Ms Zainab Ahmed.

SERAP is also arguing that “For there to be a borrower, there
must be a lender. The intention to enter into such borrower-lender
relationship must be known to both parties. Any other arrangement
that allows a borrower to access funds from a lender without the
knowledge and express consent of the lender will amount to
stealing.”

According to SERAP: “The Federal Government has repeatedly
failed to ensure transparency and accountability in the spending of
public wealth and resources such as recovered stolen public funds,
and the loans so far obtained, estimated to be $31.98bn, and failed
to address the systemic and widespread corruption in ministries,
departments and agencies (MDAs).”

The suit filed on behalf of SERAP by its lawyers Kolawole
Oluwadare and Ms Adelanke Aremo, read in part: “By the combined
reading of section 44(1) of the Nigerian Constitution 1999 (as
amended) and Article 14 of the African Charter on Human and
Peoples’ Rights, the Federal Government has absolutely no right to
borrow Nigerians’ money in the form of their unclaimed dividends
and funds in dormant accounts without their knowledge and express
consent.”

“The move to borrow Nigerians’ money amounts to unlawful
expropriation, as it is neither proportionate nor necessary,
especially given the unwillingness or inability of the government
to stop systemic and widespread corruption in MDAs, cut waste and
stop all leakages in public expenditures. The borrowing is also not
in the public interest.”

“Respect for the right to property is important to improve the
enjoyment of other basic human rights and to lift Nigerians out of
poverty. There is a limit on the ability of any government to
interfere with private property without legal justification. The
right to property is a sacred and fundamental right.”

“Borrowing unclaimed dividends and funds in dormant accounts
without due process of law and the knowledge and explicit consent
of the owners is arbitrary, and as such, legally and morally
unjustifiable.”

“To create a valid trust relationship, there must be explicit
agreement between the setlor and the trustee, for the benefits of
the trust beneficiary. There must also be sufficient evidence of
the setlor’s intention to create a trust. The relationship cannot
be arbitrarily created. It can also not be forced or assumed
unilaterally, which is exactly what the Federal Government is
pushing to do in this case.”

“According to the Nigerian Bureau of Statistics (NBS), four in
ten Nigerians or over 82.9 million Nigerians live
in poverty.”

“Where agencies of government are allowed to operate at large
and at their whims and caprices in the guise of performing their
statutory duties, the end result will be anarchy, licentiousness,
authoritarianism and brigandage leading to the loss of the much
cherished and constitutionally guaranteed freedom and liberty.”

SERAP is also seeking the following reliefs:

1. A DECLARATION that the
   provisions of Section 60[3] and Section 77[1] and [2] of the
   Finance Act allowing the Federal Government under the leadership of
   President Buhari to borrow Nigerians’ money in the form of
   unclaimed dividends and funds in dormant accounts and transferring
   the money into the “Unclaimed Funds Trust Fund” is unlawful,
   unconstitutional and a breach of Nigerians’ fundamental human
   rights particularly the right to property.
2. A DECLARATION that the
   provisions of Section 60[3] and Section 77[1][2] of the Finance
   Act, being inconsistent with section 44[1] of the Nigerian
   Constitution, is therefore null and void to the extent of its
   inconsistency pursuant to Section 1[3] of the Constitution.
3. AN ORDER of perpetual injunction
   restraining the Defendants, or any other organisation, institution
   or officer[s] acting under their instruction or control, from
   demanding, collecting or transferring unclaimed dividends and
   funds in dormant accounts of beneficiaries and account holders into
   Unclaimed Funds Trust Fund.
4. AND ANY OTHER ORDER(S) that the
   Honourable Court may deem fit to make in the circumstance of this
   suit.

No date has been fixed for the hearing of the suit.

Socio-Economic Rights and Accountability Project (SERAP) has
filed a lawsuit asking the Federal High Court in Abuja “to restrain
and stop President Muhammadu Buhari and the Federal Government from
borrowing an estimated N895bn of Nigerians’ money in the form of
their unclaimed dividends and balances in dormant accounts, under
the guise of the patently unlawful, unconstitutional, and
discriminatory legislation known as ‘the Finance Act, 2020.’”

The suit followed recent move by the Federal Government to take
over and borrow unclaimed dividends and dormant account balances
owned by Nigerians in any bank in the country. But the same
legislation explicitly excludes dormant official bank accounts by
all branches of government and their agencies.

In the suit number FHC/ABJ/CS/31/2021 filed last Friday, SERAP
is seeking: “an order of perpetual injunction restraining and
stopping President Buhari from demanding, taking over, borrowing,
and collecting Nigerians’ money in the form of their unclaimed
dividends and funds in dormant accounts or transferring and moving
the money into a trust fund known as ‘Unclaimed Funds Trust
Fund’”.

In the suit, SERAP is arguing that “the Federal Government
should not be allowed to borrow Nigerians’ money. Borrowing
unclaimed dividends and funds in dormant accounts owned by ordinary
Nigerians would negatively affect their right to an adequate
standard of living, and access to clean water, quality healthcare
and education.”

According to SERAP: “Despite Nigeria’s dwindling oil revenue,
the growing level of public debt, and widespread poverty, public
officers including the President, Vice President, governors and
their deputies, and members of the National Assembly have refused
to cut their emoluments, allowances and security votes. At the same
time, millions of Nigerians continue to bear the brunt of
mismanagement and corruption.”

Joined in the suit as Defendants are: Mr Abubakar Malami SAN,
Attorney General of the Federation and Minister of
Justice; the Senate President, Ahmad Lawan; the Speaker of
House of Representatives, Femi Gbajabiamila; and the Minister of
Finance, Budget and National Planning, Ms Zainab Ahmed.

SERAP is also arguing that “For there to be a borrower, there
must be a lender. The intention to enter into such borrower-lender
relationship must be known to both parties. Any other arrangement
that allows a borrower to access funds from a lender without the
knowledge and express consent of the lender will amount to
stealing.”

According to SERAP: “The Federal Government has repeatedly
failed to ensure transparency and accountability in the spending of
public wealth and resources such as recovered stolen public funds,
and the loans so far obtained, estimated to be $31.98bn, and failed
to address the systemic and widespread corruption in ministries,
departments and agencies (MDAs).”

The suit filed on behalf of SERAP by its lawyers Kolawole
Oluwadare and Ms Adelanke Aremo, read in part: “By the combined
reading of section 44(1) of the Nigerian Constitution 1999 (as
amended) and Article 14 of the African Charter on Human and
Peoples’ Rights, the Federal Government has absolutely no right to
borrow Nigerians’ money in the form of their unclaimed dividends
and funds in dormant accounts without their knowledge and express
consent.”

“The move to borrow Nigerians’ money amounts to unlawful
expropriation, as it is neither proportionate nor necessary,
especially given the unwillingness or inability of the government
to stop systemic and widespread corruption in MDAs, cut waste and
stop all leakages in public expenditures. The borrowing is also not
in the public interest.”

“Respect for the right to property is important to improve the
enjoyment of other basic human rights and to lift Nigerians out of
poverty. There is a limit on the ability of any government to
interfere with private property without legal justification. The
right to property is a sacred and fundamental right.”

“Borrowing unclaimed dividends and funds in dormant accounts
without due process of law and the knowledge and explicit consent
of the owners is arbitrary, and as such, legally and morally
unjustifiable.”

“To create a valid trust relationship, there must be explicit
agreement between the setlor and the trustee, for the benefits of
the trust beneficiary. There must also be sufficient evidence of
the setlor’s intention to create a trust. The relationship cannot
be arbitrarily created. It can also not be forced or assumed
unilaterally, which is exactly what the Federal Government is
pushing to do in this case.”

“According to the Nigerian Bureau of Statistics (NBS), four in
ten Nigerians or over 82.9 million Nigerians live
in poverty.”

“Where agencies of government are allowed to operate at large
and at their whims and caprices in the guise of performing their
statutory duties, the end result will be anarchy, licentiousness,
authoritarianism and brigandage leading to the loss of the much
cherished and constitutionally guaranteed freedom and liberty.”

SERAP is also seeking the following reliefs:

1. A DECLARATION that the
   provisions of Section 60[3] and Section 77[1] and [2] of the
   Finance Act allowing the Federal Government under the leadership of
   President Buhari to borrow Nigerians’ money in the form of
   unclaimed dividends and funds in dormant accounts and transferring
   the money into the “Unclaimed Funds Trust Fund” is unlawful,
   unconstitutional and a breach of Nigerians’ fundamental human
   rights particularly the right to property.
2. A DECLARATION that the
   provisions of Section 60[3] and Section 77[1][2] of the Finance
   Act, being inconsistent with section 44[1] of the Nigerian
   Constitution, is therefore null and void to the extent of its
   inconsistency pursuant to Section 1[3] of the Constitution.
3. AN ORDER of perpetual injunction
   restraining the Defendants, or any other organisation, institution
   or officer[s] acting under their instruction or control, from
   demanding, collecting or transferring unclaimed dividends and
   funds in dormant accounts of beneficiaries and account holders into
   Unclaimed Funds Trust Fund.
4. AND ANY OTHER ORDER(S) that the
   Honourable Court may deem fit to make in the circumstance of this
   suit.

No date has been fixed for the hearing of the suit.