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The Supreme Court has struck out a suit filed by the 36 state governments seeking to compel the Federal Government to account for its earnings from the sale of liquefied natural gas (LNG), natural gas liquids, and related products since 1999.
In a unanimous judgment, a seven-member panel of the court held that it lacked the original jurisdiction to hear and determine the case, which had the Attorney General of the Federation (AGF) as the sole defendant.
The lead judgment, delivered by Justice Mohammed Lawal Garba, agreed with the AGF’s preliminary objection, stating that the subject of the case had already been addressed by the Supreme Court in its earlier decision in the case of the Attorney General of Bauchi State against the AGF. The court found that the current suit amounted to an attempt to re-litigate issues previously decided, relating to revenues accruable to the government of the federation, payable into the federation account.
The states had sought various reliefs, including:
*An order directing the Federal Government of Nigeria to render an accurate and true account of the total income/profit/dividend, etc, earned by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation since 9th October 1999, when the first cargo of liquefied natural gas left the shores of Nigeria till date; and to pay same into the federation account for the purpose of appropriation and redistribution to the 36 states of the Federation and the Federal Capital Territory in the manner prescribed in Section 1 of the Allocation of Revenue (Federation Accounts, Etc.) Act CAP A15 LFN 2004.
* An order directing the Federal Government of Nigeria to immediately pay the sum of $17billion or any other sum paid as a dividend up to the 17th May 2020 and thereafter, as accruing income/profit/dividend etc. earned or to be earned by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation, into the federation account immediately upon receipt, for the purpose of appropriation and redistribution in the manner prescribed in Section 1 of the Allocation of Revenue (Federation Accounts, Etc.) Act CAP A15 LFN 2004.
*An order directing the Federal Government of Nigeria to henceforth render accurate and true account of every income/profit/dividend etc, earned or to be earned by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids, and every other business carried an by the Nigeria NLG Limited, for which it is entitled to earn income/profit/dividend etc, through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation.
*A declaration that by virtue of Section 44(3) of the Constitution of the Federal Republic of Nigeria, 1999 [as amended) and Section 1 of the Petroleum Act, CAP P10, LEN 2004, read in concert with Section 2 (1) of the 1999 Constitution of the Federal Republic of Nigeria, 1999 (as amended), liquefied natural gas and natural gas liquids are petroleum and natural gas, whose entire ownership and control are vested in the government of the Federation, also referred to as the State under Section 1 of the Petroleum Act; such that the entre federation including the 36 states and the Federal Capital Territory are entitled to the benefits therefrom.
*A declaration that the entire shareholding of the NNPC in the Nigerian LNG Limited, acquired pursuant to its powers under Section 6(1) (b) & (c) of the Nigerian National Petroleum Corporation Act, CAP N123 LFN 2004, is owned by the Government of the Federation also referred to as the State under Section 1 of the Petroleum Act, CAP P10, LFN 2004, i.e. the Federal Government of Nigeria, Including the 36 states and the Federal Capital Territory.
*A declaration that the Federal Government of Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc. through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation, is carried on in trust for the benefit of the entire Federation, including the 36 states and the Federal Capital Territory.
*A declaration that the Federal Government of Nigeria, as trustee of every income/profit/dividend etc, accruable to the Federal Government of Nigeria from its participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, in the name of Nigerian National Petroleum Corporation, is accountable to the 36 states and the Federal Capital Territory, for the total income/profit/dividend accruable to the Federal Government of Nigeria since 9th October 1999, when the first cargo of liquefied natural gas left the shores of Nigeria till date.
*A declaration that the income profit/dividend etc, accruable to the Federal Government of Nigeria from its participation in the business of Liquefying and sailing of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, in the name of Nigerian National Petroleum Corporation and carried on in trust for the benefit of the federation, Is “public money” in the light of Section 2 of the Finance Control and Management) Act, CAP F 26, LEN 2004, which by Section 80 of the 1999 Constitution of the Federal Republic of Nigeria, (as amended) is mandatorily required to be paid into a consolidated revenue fund of the Federation, for appropriation and redistribution in accordance with the Constitution of the Federal Republic of N gena 1959 (as amended).
*A declaration that the Federal Government of Nigeria is obligated to render an accurate and true account of every income/profit/dividend etc. gamed by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation since 9th October 1999, when the first cargo of liquefied natural gas left the shores of Nigeria till date; and to pay same into the federation account, for the purpose of appropriation and redistribution to the 36 states of the Federation and the Federal Capital Territory, in the manner prescribed in Section 1 of the Allocation of Revenue (Federation Accounts, Etc.) Act CAP A15 LFN 2004.
However, the court held that it lacked the original jurisdiction to preside over and determine the case. Consequently, the suit was struck out for want of jurisdiction.
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