The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against Nigeria’s oil-producing states for “failure to account for the spending of the N625 billion recently paid to them by the Federal Government, including details and locations of projects executed with the money.”
The federal government recently paid the governors of Abia, Akwa Ibom, Bayelsa, Delta, Edo, Rivers, Ondo, Imo, and Cross River states N625.43 billion in oil derivation refunds. The payments covered 13 percent of the cost of oil extraction, subsidies, and SURE-P refunds. Refunds are available from 1999 to 2021.
SERAP is asking the Federal High Court in Abuja, in suit number FHC/ABJ/CS/2371/2022, to “direct and compel the governors to disclose and widely publish the details of spending of the oil derivation refunds, subsidy, and SURE-P refunds.”
SERAP also requests that the court “compel President Muhammadu Buhari to direct anti-corruption agencies to thoroughly investigate the spending of public funds collected by governors, and where appropriate, ensure the prosecution of suspected corrupt perpetrators and the recovery of corrupt proceeds.”
According to the suit, “the Nigerian Constitution 1999 [as amended], the Freedom of Information Act, and the African Charter on Human and Peoples’ Rights impose transparency obligations on governors to disclose the spending of oil derivation refunds, subsidy, and SURE-P refunds.”
“State governors cannot hide behind the excuse that the Freedom of Information Act does not apply to their states,” according to SERAP. The governors are also legally obligated to provide the information under the provisions of the Nigerian Constitution and the African Charter on Human and Peoples’ Rights.”
“It is in the public interest and the interest of justice to grant this application,” according to SERAP. Nigerians have a constitutionally and internationally recognized right to information.”
SERAP is also arguing that, “The constitutional principle of democracy provides a foundation for Nigerians’ right to know details of spending of public funds. Citizens’ right to know fosters openness, transparency, and accountability, which are essential for the country’s democratic order.”
SERAP is also arguing that, “The public interest in obtaining the information about expenditures relating to the refunds outweighs any other interests. The oversight provided by public access to such details would serve as an important check on the governors’ activities and aid in the prevention of abuses of public trust.”
According to the suit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare and Ms Valentina Adegoke, “the Nigerian Constitution, Freedom of Information Act, and the country’s international obligations rest on the principle that citizens should have access to information regarding their government’s activities.”
“Disclosing details about the spending of oil derivation refunds, subsidy refunds, and SURE-P refunds would allow Nigerians to scrutinize it and monitor the spending of the refunds to ensure that the money is not mismanaged, diverted, or stolen.”
“The effective operation of representative democracy is dependent on the ability of the people to scrutinize, debate, and contribute to government decision making, including the use of oil derivation refunds.”
“In order to do so, they require information that will allow them to participate more effectively in the management of public funds by their state governments.”
“Publishing the details of refund spending would ensure that persons with public responsibilities are accountable to the people for the performance of their duties, including refund management.”
“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights and article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information, including about how the oil derivation refunds are spent.
“According to a combined reading of the provisions of the Nigerian Constitution, the Freedom of Information Act 2011, and the African Charter on Human and Peoples’ Rights, all of which are applicable throughout Nigeria, there are transparency obligations imposed on state governors to publish details of spending of oil derivation refunds.”
“Under the 13 per cent derivation fund, Abia State received N4.8bn; Akwa-Ibom received N128bn; and Bayelsa got N92.2bn. Cross River received N1.3 billion in refunds, Delta State received N110 billion, Edo State received N11.3 billion, Imo State received N5.5 billion, Ondo State received N19.4 billion, and Rivers State received 103.6 billion.”
“On the 13 per cent derivation fund on deductions made by NNPC, Abia State received N1.1 billion; Akwa-Ibom, N15 billion; Bayelsa, N11.6 billion; Cross River, N432 million; Delta State, N14.8 billion; Edo State, N2.2 billion; and Imo State, N2.9, billion. Ondo State received N3.7 billion, while Rivers State received N12.8 billion.”
“The states also received N4.7 billion each, for a total of N42.34 billion, as refunds on subsidy and SURE-P withdrawals from 2009 to 2015. From 2009 to 2015, the Federation Account paid N3.52 billion in refunds to local government councils on subsidy and SURE-P withdrawals.”
The suit’s hearing date has not been set.
