• News - South South - Rivers
  • Updated: January 01, 2023

Wike, Okowa Sued By SERAP Over N625 Billion Oil Derivation Funds

Oil-producing states in the country have been sued by the Socio-Economic Rights and Accountability Project (SERAP) over their failure to account for the spending of the oil derivation refunds of N625 billion recently paid to them by the federal government.

The aforementioned sum was paid to the governors of Abia, Akwa Ibom, Bayelsa, Delta, Edo, Rivers, Ondo, Imo and Cross River States.

Per reports, the payments covered 13 per cent oil derivation, subsidy, and SURE-P refunds dating from 1999 to 2021.

Filed by SERAP lawyers Kolawole Oluwadare and Valentina Adegoke at the Federal High Court, Abuja on Friday, the suit marked FHC/ABJ/CS/2371/2022 seeks to "compel President Muhammadu Buhari to direct anti-corruption agencies to thoroughly investigate the spending of the public funds collected by the governors, and where appropriate, ensure the prosecution of suspected perpetrators of corruption, and the recovery of proceeds of corruption.”

“The Nigerian Constitution, Freedom of Information Act, and the country’s international obligations rest on the principle that citizens should have access to information regarding their government’s activities.

“Disclosing details of the spending of the oil derivation refunds, subsidy and SURE-P refunds would allow Nigerians to scrutinise it, and to monitor the spending of the refunds to ensure that the money is not mismanaged, diverted or stolen.

“The effective operation of representative democracy depends on the people being able to scrutinise, discuss and contribute to government decision making, including on the spending of the oil derivation refunds.

“To do this, they need the information to enable them to participate more effectively in the management of public funds by their state governments.

“Publishing the details of the spending of the refunds would ensure that persons with public responsibilities are answerable to the people for the performance of their duties including the management of refunds.

“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights and article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information, including about how the oil derivation refunds are spent.

“By the combined reading of the provisions of the Constitution of Nigeria, the Freedom of Information Act 2011, and the African Charter on Human and Peoples’ Rights, applicable throughout Nigeria, there are transparency obligations imposed on the state governors to publish details of spending of the oil derivation refunds.

“Under the 13 per cent derivation fund, Abia State received N4.8bn; Akwa-Ibom received N128bn; and Bayelsa got N92.2bn. Cross River got a refund of N1.3bn; Delta State received N110bn; Edo State received N11.3bn; Imo State, N5.5bn; Ondo State, N19.4bn; and Rivers State received 103.6bn.

“On the 13 per cent derivation fund on deductions made by NNPC, Abia State received N1.1 billion; Akwa-Ibom, N15 billion; Bayelsa, N11.6 billion; Cross River, N432 million; Delta State, N14.8 billion; Edo State, N2.2 billion; and Imo State, N2.9, billion. Ondo State got N3.7 billion while N12.8 billion was paid to Rivers State.

“The states also received N4.7 billion each, totalling N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015.

"The Federation Account also paid N3.52 billion each as a refund to local government councils on withdrawals for subsidy and SURE-P from 2009 to 2015", it reads in part.

A date for the hearing of the suit is yet to be fixed.

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Sydney Elike

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