The state government of Adamawa has initiated a lawsuit against the federal government before the supreme court over revenue distribution from the federation account.
Through a statement issued on Thursday, Humwashi Wonosikou, chief press secretary to Ahmadu Fintiri, the governor of Adamawa, said the state is seeking interpretation of Section 162 (1), (2) and (3) of the constitution concerning the distribution of revenue from the federation account.
Adamawa state argued that “the entire sum in the federation account must be distributed among all levels of government without deductions, except as permitted by law”.
“The president must comply strictly with the constitution in managing and distributing revenue,” the statement reads.
“All revenue collected, except those exempted by the constitution, must be paid into the federation account for distribution to all tiers of government.
“The federal government has no discretion to withhold or deduct revenue for any purpose not expressly permitted by the constitution.”
In addition, Adamawa is seeking that “the federal government must distribute the entire revenue from the federation account without deductions, except as permitted by law”.
“Any deductions or withholdings made without constitutional backing are unconstitutional,” Adamawa added.
“The federal government’s discretion to manage revenue is limited to only what is expressly permitted by the constitution.”
The Adamawa government added that it is also seeking an undistorted interpretation of the constitution to make sure that revenue distribution is “done in a transparent and constitutional manner, without arbitrary deductions or withholdings by the federal government”.
On July 11, the supreme court of Nigeria ruled that the federal government from now on pay allocations directly to local government councils from the federation account.
A seven-member panel of justices, whilst delivering judgment in the lawsuit, held that state governments have persistently abused abuse their powers by holding onto and using the funds meant for LGAs.
The highest court in the country also directed the federal government to retain allocations of LGs governed by unelected officials appointed by the governor.