Release Rivers’ $1.1bn Now

If the recent judgement of a Federal High Court in Abuja, ordering the Federal Government to pay both Rivers and Akwa Ibom States a total sum of $3.3 billion is anything to go by, Rivers State will soon be well-heeled and perhaps secure more funds for infrastructural development by a whopping $1.1 billion (N456,899,206,755.68 billion at an exchange rate of N409.94 per dollar).
The court, in a judgement delivered by Justice Taiwo Taiwo, specifically ordered that $1,114,551,610 be paid to Rivers State, while another sum of $2,258,411,586 be reimbursed Akwa Ibom State, being the amount they separately claimed against the Federal Government as share that ought to accrue to them from $62 billion recovered from oil companies. The court also awarded a post-judgement interest of 10 per cent in favour of the plaintiffs until the final liquidation of the judgement.
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 judgement in Suit No: FHC/ABJ/CS/174/2021 filed by the Attorneys-General of both states against the Attorney-General of the Federation.
Recall that in 2016, Rivers, Bayelsa and Akwa Ibom States, through their Attorneys -General, had sued the Federal Government at the Supreme Court, seeking a declaration that there is a statutory obligation imposed on the Defendant 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.
Hence, the states had asked the court to declare that the failure of the Defendant to accordingly adjust the share of the Federal Government in the additional revenue in the Production Sharing Contracts, following the increase of the price of crude oil above 20.00 per barrel in real terms, constitutes 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.
We feel ecstatically delighted at this historic judgement and commend the court for its courage in deciding the matter in the way it has gone. Specifically, we congratulate the Rivers State Governor, Chief Nyesom Wike, on this impressive victory and his audacity in instituting the suit with his Akwa Ibom counterpart, Mr Emmanuel Udom, first at the Supreme Court, and then the Federal High Court.
Beyond the legal victory, it is hoped that President Muhammadu Buhari will graciously accept the court’s decision and act as quickly as possible. Such a response will showcase him as the democrat he has always professed to be. Besides, it will promote the rule of law and encourage many other leaders who are consistently prone to disobeying court judgements to desist from the awkward practice.
Following the judgement of the Supreme Court and in compliance with the Attorney- General of the Federation’s advice, 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, the Attorney-General, without recourse to the governments of Rivers and Akwa Ibom States, unilaterally claimed to have settled with International Oil Companies (IOCs). We reject this move to manipulate the judgement of the court by the federal authorities. This is unacceptable. The court has already ruled on the matter and anything short of that cannot stand.
If the money is promptly released, Governor Wike, known to always intervene and fix many federal projects in the state, particularly roads and building of flyovers on federal roads, will certainly utilise the funds for that objective. From the Port Harcourt-Owerri Federal Road, Port Harcourt-Aba Road, Port Harcourt-Refinery-Onne Road to Federal roads within the City of Port Harcourt: Ikwerre, Azikiwe, among others, the evidence abound. These funds running into billions of naira could have been applied to other clutching needs and concerns of the state.
It is heartwarming that this good news has come when the state is in dire need of finance to satisfy her craving for more essential and developmental projects. Consequently, a better way to utilise the money is to set out a proper plan and procedures to effectively manage it. Indeed, the government and people of the state will be better off if there is a coherent blueprint detailing how the funds should be handled to procure tangible benefits to everyone.
Since there has always been a need to enhance the lives of Rivers people and alleviate poverty in the state, we are strong on the view that the money, when released, could be used for infrastructural projects. The state is in dire need of both hard and soft projects such as proper transport systems, power generation, security, agricultural development, education, workers’ welfare, pensions and gratuities, human capital development, health care, among others. Investing in these areas will create better and longer-term value.
Known for prudently managing the financial resources of the state, it is not in question that the governor has demonstrated that good governance is feasible where there is the political will to do so. There could not be a better way of satisfying the yearnings of the Rivers people and silencing political detractors than the governor’s landmark achievements in the state through key and economically viable projects. There is a need for Wike to lay a good foundation by completing all other viable and people-oriented inherited projects from his predecessors so that his successor would have a smooth sail in governance.