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Court Orders FG To Pay Rivers $1,114,551,610; A’Ibom $2,258,411,586

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The Federal High Court sitting in Abuja and presided over by Hon. Justice Taiwo O. Taiwo has ordered the Federal Government to pay Rivers State $1,114,551,610.00 and Akwa Ibom State $2,258,411,586.00, respectively.
The money is entitlements of Rivers and Akwa Ibom states, based on the subsisting decision of the Supreme Court over production sharing contracts arising from the Deep Offshore and Inland Basin Production Sharing Contracts.
Taiwo delivered the judgment in Suit No: FHC/ABJ/CS/174/2021filed by the Attorney General of Rivers State and Attorney General of Akwa Ibom State against the Attorney General of the Federation.
It would be recalled that in 2016, Rivers, Bayelsa and Akwa Ibom states, through their Attorneys-General, had sued the Federal Government, represented by the Attorney General of the Federation at the Supreme Court in Suit No: SC.964/2016, seeking a declaration that there is a statutory obligation imposed on the Defendant (the Federal Government) pursuant to Section 16(1) of the Deep Offshore Inland Basin Production Sharing Act, Cap.D3 Laws of the Federation of Nigeria 2004, to adjust the share of the Federation in the additional revenue accruing under the Production Sharing Contracts if the price of crude oil at any time exceeds $20.00 per barrel.
The states had asked the court to declare that the failure of the Defendant to accordingly adjust the share of the Government of the Federation in the additional revenue in the Production Sharing Contracts (variously approved by the Defendant) following the increase of price of crude oil in excess of 20.00 per barrel in real terms, constitute a breach of the said Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act, and has therefore, affected the total revenue accruing to the Federation, and consequently, the total statutory allocation accruing to the Plaintiffs by virtue of the provisions of Section 162 of the Constitution of the Federal Republic of Nigeria 1999 as amended.
The three oil producing states further prayed the court to issue a consequential order compelling the Defendant to adjust the share of the Government of the Federation in the additional revenue under all the Production Sharing Contracts in Nigeria’s oil industry within the Inland Water Basin Deep Offshore areas as approved by the Defendant from the respective times the price of crude oil exceeded $20.00 per barrel in real terms and to calculate in arrears with effect from August, 2003, and recover and pay immediately all outstanding statutory allocations due and payable to the Plaintiffs arising from the said adjustments.
It would be recalled that at the Supreme Court, the Attorney-General of the Federation opted for an out of court settlement, and consequently, terms of settlement were duly drawn up by the parties and entered as the judgment of the court.
The judgment specifically stated that the reliefs in the amended Originating Summons relating to the larger interest of the Federal Government of Nigeria and the entire citizenry of the Federal Republic of Nigeria shall be diligently implemented.
It was also agreed that the Attorney General of the Federation, working jointly with the Plaintiffs should undertake to immediately set up a body and the necessary mechanism for recovery of all lost revenue accruing to the Federation Account in the past and up till the date of full recovery and accruing in future or an acceptable instalmental payments thereof within 90 days next from the date of execution of these presents or its being made judgment of the court.
Following the judgment of the Supreme Court and in compliance therewith the Attorney General of the Federation, the Defendant, constituted a body to determine the respective liabilities including the amount due to oil mineral producing states as derivation proceeds.
The report of that body stated among others that Rivers and Akwa Ibom states were entitled to $1,114,551,610.00 and $2,258,411,586.00, respectively, as derivation proceeds.
However, Attorney General of the Federation, without recourse to the governments of Rivers and Akwa Ibom states, unilaterally claimed to have settled with International Oil Companies (IOCs).
It was gathered that this unilateral action on the part of the Attorney General of the Federation as the Defendant in the judgment of the Supreme Court that led Rivers and Akwa Ibom states, to fill the suit at the Federal High Court in Abuja.
Based on the suit filed by the state, the Federal High Court presided over by Hon. Justice Taiwo Taiwo, declared that Rivers and Akwa Ibom states were entitled to $1,114,551,610.00 and $2,258,411,586.00, respectively, as derivation proceeds.
The court also awarded a post judgment interest of 10 per cent in favour of the Plaintiffs until the final liquidation of the judgment.

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Trans-Kalabari Road: Banigo, Stakeholders Condemn Abduction Of Expatriate

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Kalabari traditional rulers and stakeholders have condemned the recent abduction of an expatriate staff of Lubric Construction Company working on the Trans-Kalabari Road.
Speaking at a meeting at the Government House in Port Harcourt, last Friday, Rivers State Deputy Governor, Dr. Ipalibo Harry Banigo said she was deeply pained by the unfortunate incident carried out by unknown miscreants.
According to the deputy governor, who said that the State Chief Executive Officer, Nyesom Wike, was desirous to bring more development projects to Kalabari Kingdom, regretted that this act was capable of discouraging him.
“I want to reiterate that our governor is very desirous to do more developmental projects in our communities, there are many more things he has in the card to do for us, and if we allow this ugly thing to surface, that attitude will discourage him”, the deputy governor noted.
Banigo, who said that perpetrators of the heinous crime did not drop from the sky, insisted that they were community people, and must be fished out and dealt with decisively, while calling for the immediate and unconditional release of the abductee.
Also speaking, the Chairman of the Greater Port Harcourt City Development Authority, Chief Ferdinand Alabraba, expressed regrets that a project as important as the Trans-Kalabari Road would be tampered with by persons who do not mean well for the Kalabari people.
“If their intention is to run down the good works of our dear governor, over a project which the Kalabari people have been yearning for over the years, then, I am sure God Almighty will not allow them to get away with this dastardly act of kidnapping one expatriate”, Alabraba stressed.
Alabraba further said, “It is important that we talk to ourselves and ensure that everything possible is done to ensure immediate release of the victim, and ensure that measures are put in place to forestall this type of thing in the future”.
Presenting a seven-point communique, Amanyanabo of Minama, King Iboroma Talbot Pokubo, who represented the Amanyanabo of Abonnema, King Disreal Gbobo Bobmanuel, demanded for the immediate and unconditional release of the expatriate, and reassured Governor Wike of their unwavering support for the governor.

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Buhari Approves Incorporation Of NNPC, Appoints Board Members

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President Muhammadu Buhari, has directed that the Nigerian National Petroleum Company Limited be incorporated.
He also approved the appointment of the Board and Management of the NNPC Limited with Senator Ifeanyi Ararume as chairman.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, was appointed chief executive officer.
This was contained in a statement by his Special Adviser on Media and Publicity, Mr Femi Adesina, saying that the president acted in accordance with the Petroleum Industry Act 2021.
The statement read, “President Muhammadu Buhari, in his capacity as Minister of Petroleum Resources, has directed the incorporation of the Nigerian National Petroleum Company Limited.
“This is in consonance with Section 53(1) of the Petroleum Industry Act 2021, which requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of commencement of the Act in consultation with the Minister of Finance on the nominal shares of the company.
“The Group Managing Director of the NNPC, Mr Mele Kolo Kyari, has, therefore, been directed to take necessary steps to ensure that the incorporation of the NNPC Limited is consistent with the provisions of the PIA 2021.
“Also, by the power vested in him under Section 59(2) of the PIA 2021, President Buhari has approved the appointment of the Board and Management of the NNPC Limited, with effect from the date of incorporation of the company.
“Chairman of the board is Senator Ifeanyi Ararume, while Mele Kolo Kyari and Umar I. Ajiya are chief executive officer, and chief financial officer, respectively.
“Other board members are; Dr Tajudeen Umar (North-East); Mrs Lami O. Ahmed (North-Central); Mallam Mohammed Lawal (North-West); Senator Margaret Chuba Okadigbo (South-East), Barrister Constance Harry Marshal (South-South); and Chief Pius Akinyelure (South-West).”

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Reject Buhari’s Fresh Loan Request, SERAP Tells NASS

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The Socio-Economic Rights and Accountability Project (SERAP) has urged the Senate President, Dr Ahmad Lawan; and Speaker of House of Representatives, Hon Femi Gbajabiamila; to reject the fresh request by President Muhammadu Buhari, to borrow $4billion and €710million.
SERAP said if such request must be granted, the Federal Government should publish details of spending of all loans obtained since May 29, 2015.
The group also expressed fear that if the fresh request is granted, it may take Nigeria’s to over N35trillion.
Buhari recently sought the approval of the National Assembly to borrow $4,054,476,863 and €710million, on the grounds of “emerging needs.”
The request was contained in a letter dated August 24, 2021.
In an open letter dated September 18, 2021, and signed by SERAP Deputy Director, Kolawole Oluwadare, the organisation expressed “concerns about the growing debt crisis, the lack of transparency and accountability in the spending of loans that have been obtained, and the perceived unwillingness or inability of the National Assembly to vigorously exercise its constitutional duties to check the apparently indiscriminate borrowing by the government.”
SERAP said, “The National Assembly should not allow the government to accumulate unsustainable levels of debt, and use the country’s scarce resources for staggering and crippling debt service payments rather than for improved access of poor and vulnerable Nigerians to basic public services and human rights.
“The country’s public debt has mushroomed with no end in sight. The growing national debt is clearly not sustainable. There has been no serious attempt by the government to cut the cost of governance. The leadership of the National Assembly ought to stand up for Nigerians by asserting the body’s constitutional powers to ensure limits on national debt and deficits.
“Should the National Assembly and its leadership fail to rein in government borrowing, and to ensure transparency and accountability in the spending of public loans, SERAP would consider appropriate legal action to compel the National Assembly to discharge its constitutional duties.
“SERAP notes that if approved, the country’s debts will exceed N35trillion. The government is also reportedly pushing the maturity of currently-secured loans to between 10 and 30 years. N11.679trillion is reportedly committed into debt servicing, while only N8.31trillion was expended on capital/development expenditure between 2015 and 2020.
“Ensuring transparency and accountability in the spending of loans by the government and cutting the cost of governance would address the onerous debt servicing, and improve the ability of the government to meet the country’s international obligations to use maximum available resources to ensure the enjoyment of basic economic and social rights, such as quality healthcare and education”, SERAP added.

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