N500bn oil derivation suit: FG seeks out-of-court settlement

Vanguard

1 June 2011

N500bn oil derivation suit: FG seeks out-of-court settlement

ABUJA – The Federal Government, yesterday, asked a Federal High Court sitting in Abuja to discontinue further hearing on the suit filed before it by 21-traditional rulers of mineral producing communities, seeking a release of N500 billion hitherto allocated to the Niger Delta between 2001 and 2009.

The Niger Delta monarchs, who approached the High Court under the aegis of the Traditional Rulers of Oil Mineral Producing Communities of Nigeria, TROMPCON, contended that the sum, which they said formed part of the statutory funding contribution of the Federal Government to the Niger Delta Development Commission, NDDC, for the aforementioned years, was withheld by former President Olusegun Obasanjo whilst he was in office.

Consequently, they urged the trial court to not only declare the action of the former President Obasanjo illegal and unconstitutional, but  also direct the Attorney General of the Federation, AGF, Minister of Finance and Federal Ministry of Finance, to remit  N484,450,551,137.91, to the NDDC, same being the difference between the statutorily generated 15% total amount from the federation account, as prescribed in the NDDC Act, between 2001 and 2009.