BREAKING: Court Rules On FG’s Proposed Deduction Of $418m From 36 States

A Federal High Court in Abuja has given a ruling on the Federal Government’s proposed deduction of $418m from the 36 states of the federation.

Giving the ruling on Friday, November 5, 2021, the presiding judge, Justice Inyang Ekwo restricted the Federal Government from deducting the money from the states account.

The judgement is following an ex parte application filed by the counsels representing the 36 states; Jibrin Okutepa (SAN), and Ahmed Raji (SAN).

Moving the motion, the lead counsel, Okutepa argued that the 36 states would be completely crippled if the Federal Government goes ahead to deduct the huge amount from the bank accounts of the states.

According to him, the Federal Government had revealed the plan to deduct the $418m from the state account monthly as part of debts for contracts allegedly executed for the states.

Okutepa, however, said that the 36 states attorneys-general have read the purported judgment displayed by the Federal Government and found that the states were not parties to the court action which resulted in the judgment debt.

He added that the purported contract claimed to have been executed for the states were not known to any of the 36 state governments and is, therefore, a phoney contract.

Okutekpe further notified the court that the Federal Government was the only party to the court case that brought the judgment and therefore such judgment is not binding on the state government.

After the arguments by the States, Justice Ekwo ordered the Federal Government suspend any deduction States accounts in respect of the purported Court judgment until all issues relating to it were fully determined.

The case was adjourned to November 30, 2021.