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HomeTop NewsNigeria to pay Bayelsa $951 mln 13% derivative arrears after court judgment

Nigeria to pay Bayelsa $951 mln 13% derivative arrears after court judgment

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An Abuja division of the Federal High Court has ordered the Federal Government to pay $951 million to the Bayelsa State Government as arrears of 13 percent derivative revenue due to the state.

Justice Inyang Ekwo, who delivered the judgment, held that the Attorney-General of the Federation (AGF), the sole defendant in the case, failed to enter his defence in the suit.

Ekwo ruled that the development made the court declare the plaintiff’s case “unchanged.”

Ken Njemanze filed the suit on behalf of the Bayelsa government. The plaintiff, in the suit marked: FHC/ABJ/CS/175/2012 and filed on February 12, urged the court to compel the AGF to pay five percent of $50 billion recovered as additional revenue that accrued to the Federal Government.

Bayelsa State Attorney General in an affidavit upon which the plaintiff’s claims were based, had urged the court to make the following orders:

“An order directing the defendant (AGF) to pay the sum of $951,190, 840.00, being the 13 percent derivative sum due as arrears of revenue and payable to Bayelsa as assessed, completed and calculated by the body set up by the AGF pursuant to paragraph b (iii) (b) of the terms of settlement made by the (consent) judgment of the court by the Supreme Court in suit No: SC 964/2016 Attorney General of Rivers State and Others Vs Attorney General of the Federation on October 17, 2018.

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“This is in addition to 10 percent post-judgment interest at the court rate on the said sum of $951, 190, 840.00, until final liquidation thereof.”

The judge noted that where a person issues a letter of demand on another person upon outstanding facts, the person for whom the demand notice was issued must take steps to react to same.

“Where the person to whom such demand notice is issued takes no steps, he is deemed to have admitted the claims thereby giving the other person the option of enforcing the claims by the available procedures for enforcement of undisputed claims. That is what has happened in this case,” the judge held.

He said the defendant (AGF) had admitted the claims of the Bayelsa State government in the process the former filed in reaction to the suit.

“I find no material upon which I can grant leave of this court for the defendant to enter a defence or transfer this matter to the general cause list. In that case, I also find that the case of the plaintiff remains not only challenged but admitted and therefore must succeed on the merit.

“Judgment is hereby entered on the claims of the plaintiff in this case. This is the order of this court,” the judge declared.

It would be recalled that the Akwa Ibom, Bayelsa and Rivers States government had sued the AGF at the Supreme Court, demanding an upward adjustment of the shares of revenues accruing to the Federal Government whenever the price of crude oil exceeds $20 per barrel.

In the apex court verdict delivered in October 2018, John Okoro, ordered the Federal Government to embark on an upward adjustment of the shares of revenues accruing to the government whenever the price of crude oil exceeds $20 per barrel.

The three oil states in the Niger Delta: Rivers, Bayelsa and Akwa-Ibom, had approached the Supreme Court for interpretation of Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contract Act in suit number SC964/2016 filed on their behalf by their lead counsel, Lucius Nwosu.

The particular section requires the Federal Government to adjust the shares of the revenue accruable to the federation, whenever the price of crude oil exceeds $20 per barrel.

According to the Bayelsa State Government, the money had accrued from 2003 to 2017.

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