Bayelsa, Akwa Ibom and Rivers states sue federal government

Bayelsa, Akwa Ibom and Rivers states sue federal government

- Bayelsa, Akwa Ibom and Rivers states have filed a suit at the Supreme Court against the federal government

- The states are challenging the loss of N500 trillion in oil revenue

- They cited negligent execution of petroleum production contracts by multinationals operating in Nigeria as one of their reasons for approaching the apex court

Bayelsa, Akwa Ibom and Rivers states have filed a suit at the Supreme Court against the federal government challenging the loss of N500 trillion in oil revenue.

The states cited negligent execution of petroleum production contracts by multinationals operating in Nigeria as one of their reasons for approaching the apex court .

The plaintiffs are praying the apex court to compel the federal government to implement Section 162 of the 1999 Constitution as it relates to oil revenue generation and sharing among the component parts of the federation.

Bayelsa, Akwa Ibom and Rivers states sue federal government

The states are chalenging the federal government due to the loss of N5OO trillion in oil revenue

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In the originating summons by Luscious Nwosu, SAN on behalf of the three states, the Supreme Court is being urged to determine whether there was a statutory obligation imposed on the defendant pursuant to Section 16 of the Deep Offshore and Inland Basin Production Sharing Contracts Act Cap D3 of the Laws of the Federation 2004.

They also want the apex court to determine whether there was a statutory obligation imposed on the federal government to adjust its share in the additional revenue accruing under the various production sharing contracts approved by the defendant if the price of crude oil at any time exceeds $20 per barrel, in real terms, to such extent that the production sharing contracts shall be economically beneficial to the government of the federation.

They equally sought a consequential order of the court to compel the defendant to adjust the share of the government of the federation in the additional revenue under all the production sharing contracts in Nigeria’s oil industry within the inland basin and deep offshore areas as approved by the defendant from the respective terms the price of crude oil exceeded $20 per barrel.

Bayelsa, Akwa Ibom and Rivers states sue federal government

Not a laughing matter! The states are determined to get their monies back from the federal government

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The plaintiffs also want the Federal Government to be compelled to calculate in arrears with effect from August 2003 as well as recover and pay immediately all outstanding statutory allocations due and payable to them from the said adjustment.

Justice Bode Rhodes, who led six other Supreme Court justices, fixed November 14 for hearing of the suit.

Source: Naij.com

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