N2.2trn deduction: Supreme Court gives FG, 20 states 3 months to settle rift

Kolawole Daniel, Abuja - 01.07.2009

THE Supreme Court on Tuesday, asked both the Federal Government and the 20 states to bring before it on October 5, the terms of settlement reached by both parties in the suit challenging the illegal deductions from the Federation Account.

The states had also demanded for the refund of N2.2 trillion illegal deductions by the Federal Government. But when the matter came up at the apex court yesterday, Justice Niki Tobi told the parties in the suit that since they had commenced talk on an out-of-court settlement, what they have to do was to bring before it their conclusion of the settlement on the next adjourned date.

Though, the counsel to the states, Chief Adegboyega Awomolo (SAN), had asked for a week adjournment, the presiding judge turned him down in view of the vacation of the court.

However, the Attorney General of Osun State, Niyi Owolade, who spoke to newsmen after the sitting, said that both the Federal Government and the 20 states’ representatives had met and gone far in reaching a consensus over the issue, adding that “it is just for us to articulate the terms of settlement which we will bring to the Supreme Court. I think we are very close because out of the 11 issues, we have agreed on nine.”

The 20 states involved were also contending that such deduction breached Section 162 of the 1999 Constitution. The period in question was from 2004 to 2007.

At the onset, only 14 states approached the apex court for the refund of N1.45 trillion which was also an increase from the initial N1.1 trillion last year when the legal battle began.