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FAAC: Court strikes out Ekiti Govt’s request to stop allocation to Police Trust Fund 

The Federal High Court in Abuja on Monday struck out a restraining suit filed by the Ekiti State Government against the deductions made by the Federal Government of Nigeria from the Federation Account to fund the Nigeria Police Trust Fund.

Justice Obiora Egwuatu struck out the suit, declaring it an abuse of court process, in line with the preliminary objection raised by the legal team of the Minister of Finance, Wale Edun.

Among other reliefs, the Ekiti State Government, through its Attorney General, sought “a declaration restraining the Government of the Federal Republic of Nigeria, the Minister of Finance, and others from implementing or continuing to implement the provisions of Section 4(1)(a) and Section 4(1)(b) of the Nigeria Police Trust Fund (Establishment) Act, or in any manner whatsoever deducting or continuing to deduct 0.5% of the total revenue accruing to the Federation Account, or any sum whatsoever from the revenue accruing to the Federation Account, including collecting direct levies from companies for the purpose of funding the Nigeria Police Trust Fund or at all.” 

In the suit marked FHC/ABJ/CS/253/2023, counsel for the plaintiff, O. O. Olowolafe, SAN, argued that no provision of the 1999 Constitution (as amended) permits the Federation to allocate funds from the Federation Account to any of its agencies or to make laws allowing such deductions.

C. Ezeukwu, counsel for the Revenue Mobilization Allocation and Fiscal Commission, told the court that the alleged deductions or disbursements were a matter of proof, adding that the plaintiff’s submissions failed to establish any violation.

Henrietta Ekeng, counsel for the Minister of Finance, submitted that the ministry did not collude to make deductions in breach of the Constitution and had not acted in contravention of any law.

The lawyer emphasized that the court lacked jurisdiction to entertain the matter, noting that the subject of the suit had already been decided in Suit No. FHC/ABJ/CS/511/2020: A.G. Rivers State v. A.G. Federation & 4 Ors, with judgment delivered on January 26, 2022.

The Minister of Finance urged the court to hold that the suit was an abuse of court process and that the plaintiff was not entitled to the reliefs sought.

Delivering judgment on Monday, Justice Egwuatu held that the subject matter of the current suit had already been litigated and ruled upon in a previous judgment, from which the plaintiff could benefit.

“The use of judicial process becomes abusive when a party improperly employs it to the irritation and annoyance of their opponent, and to the detriment of the efficient and effective administration of justice,” the judge said.

“In my view, this is one such improper use of judicial process by the plaintiff,” he added.

In Suit No. FHC/ABJ/CS/511/2020, filed on May 20, 2020, the Rivers State Government, through its Attorney General, challenged the constitutionality and validity of Sections 4(1)(a) and 4(1)(b) of the Nigeria Police Trust Fund (Establishment) Act, 2019, which allow for the deduction of 0.5% of the total revenue accruing to the Federation Account to fund the Nigeria Police Trust Fund.

On January 26, 2022, Justice Ahmed Mohammed ruled that the direct deduction of funds from the Federation Account to fund the Nigeria Police Force was illegal and unlawful.

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