In a landmark ruling, the Supreme Court has struck out a suit brought by Nigeria’s 36 states seeking to compel the Federal Government to account for earnings from the sale of liquefied natural gas (LNG) and related products since 1999.
Delivering a unanimous judgment, a seven-member panel led by Justice Uwani Abba-Aji ruled that the Supreme Court lacked the original jurisdiction to hear the case. Justice Mohammed Lawal Garba, who gave the lead judgment, upheld a preliminary objection by the Attorney General of the Federation (AGF), the sole defendant in the case.
The court ruled that the issues raised in the suit had been addressed in an earlier Supreme Court decision involving the Attorney General of Bauchi State and the AGF. Justice Garba held that the current case amounted to an attempt to relitigate previously decided matters concerning revenues payable into the Federation Account.
The states had requested an order compelling the Federal Government to:
1. Account for profits and dividends from Nigeria’s shareholding in Nigeria LNG Limited (NLNG) through the Nigerian National Petroleum Corporation (NNPC).
2. Pay $17 billion or other earnings into the Federation Account for redistribution as required by law.
3. Render accurate accounts of all income from LNG and natural gas liquids sales.The plaintiffs argued that the earnings constituted public revenue under the Nigerian Constitution and should be distributed equitably among the 36 states and the Federal Capital Territory.
Despite the states’ arguments, Justice Garba emphasized that the Supreme Court could not assume jurisdiction over the matter due to its prior decision on related issues. Other members of the panel, including Justices Emmanuel Agim, Simon Tsammani, and Stephen Adah, concurred with the ruling.
This decision reinforces the precedent set in the earlier case and underscores the court’s position on revenue disputes involving the Federation Account and related earnings. The Federal Government has yet to respond to the ruling.
