The Federal High Court sitting in Abuja has declared as unconstitutional and unlawful the deductions made by the Federal Government from the Federation Account for the funding of Nigeria Police Trust fund. Delivering a judgment in a suit filed by the Rivers State government against the action, Justice Ahmed Mohammed held that the Federal Government was wrong in deducting money from the Federation Account to fund its own agencies not listed in the 1999 constitution for direct allocation. The judge further held that section 161 and section 162 of the 1999 Constitution were clearly breached by the federal government in making direct allocation to the Police Trust Fund from the Federation Account. Specifically the Judge held that section 162 of the 1999 is clear and unambiguous to the effect that only the Federal, States and Local Governments shall be allocated fund directly from the Federation Account. The court also held that section 4 of the Nigeria Police Trust Fund Act 2019 relied upon by the federal government to justify the unlawful deductions from the Federation Account is inconsistent with section 162 of the 1999 Constitution which recognizes only the Federal, States and Local Governments. Justice Mohammed, upholding the suit ordered that the fund belonging to Rivers State that was used to fund Nigeria Police Trust fund by the federal government should be refunded to the state. He however, declined to extend similar order of refund to the 35 remaining states on the ground that they were not parties in the suit and that the Rivers State as the plaintiff in the matter did not file it on behalf of others. Rivers State instituted the court action through the former President of the Nigerian Bar Association, Joseph Daudu to challenge the decision of the federal government allocating funds directly from the Federation Account to fund some of its agencies claiming that the decision violated section 162 of the 1999 Constitution. The Rivers State government also claimed that the federal government’s action deprived the state substantial revenue from the Federation Account and asked the court to nullify the unlawful fund allocation from the Federation Account. The Plaintiff also claimed that levies imposed on companies operating in Nigeria to be paid directly into the Nigeria Police Force Trust Fund instead of the Federation Account was also illegal, unlawful and unconstitutional as it has deprived it of substantial revenue accruiable to the state as taxes. In the judgment, the Judge agreed with the plaintiff that under the relevant laws, such levies are supposed to be paid directly to the Federation Account and not to any federal government agencies. Defendant in the matter are Attorney General of the Federation and Minister of Justice, Accountant General of the Federation, Revenue Mobilization, Allocation and Fiscal Commission and Minister of Finance. However only the Attorney General of the Federation filled processes to defend the federal government’s action.
