Court Orders FG To Pay Rivers, Akwa Ibom $3.3bn Oil Revenue

22June 2021By Victoria Abah

A Federal High Court sitting in Abuja has ordered the Federal Government to pay the sum of over $3billion to Rivers and Akwa-Ibom States, as their revenue share from crude oil sales.

The amount formed the shares of the two sales from the $62 billion said to have been recovered from some oil companies by the Federal Government.

In a judgment, Justice Taiwo Taiwo ordered that $1.1b be paid to Rivers state, while another sum of $2.2b be paid to Akwa Ibom state, being the amount separately claimed against the Federal Government from the share from the $62 billion recovered from the oil companies.

Justice Taiwo held that the Federal Government admitted to the monetary claims of the two states against it, by its refusal to defend the case when served with the court processes.

Justice Taiwo said by refusing to debunk, counter claim or controvert the claims of the two states on the oil revenue issue, the Federal Government had admitted all the averments of the two states to be true, adding that the suit was founded on a Supreme Court judgment on how proceeds from sales of crude oil should be shared.

The Court rejected the assertion of the Federal Government that it cannot pay the money it did receive from crude oil sales, adding that the defendant ought to have filed bonafide defence to explain its position in respect of the $62 billion oil earnings as required by law.

The two plaintiffs had instituted their joint case based on a press statement from the office of the AGF published by This day newspaper to the effect that another $62 billion was recovered from foreign oil companies as proceeds of crude oil sales.

Leave a Reply

Your email address will not be published. Required fields are marked *