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Court Halts Sharing of Derivation Funds to Oil Producing States

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The Federal High Court, Abuja has ordered the Accountant General of the Federation to immediately halt the distribution of more than N1trillion due to oil producing states pending the determination of a suit brought before it by the Imo State Government.
The presiding Justice Ahmed Mohammad in an interim order, held  that the distribution of the derivation funds without the indices of the Revenue, Mobilization, Allocation and Fiscal Commission (RMAFC) was injurious to the applicant – Imo State Government.
The Imo Attorney General had in a suit No FHC/ABJ/CE/415/2022, against RMAFC and others, challenged the distribution of the said funds without unambiguous indices by RMAFC as provided by in Nigeria’s Constitution.
In his submission, counsel to  Imo State Government, Chief Olusola Oke pointed out on the need to protect his client pending the determination of the suit.
After granting the exparte order, Justice Mohammed ordered the Imo state to join other oil producing states as respondents to the suit.
Consequently, the judge adjourned the matter till June 15,2022 for hearing of the motion on notice.

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