25 October 2011
SOME states of the federation, opposed to the newly launched Sovereign Wealth Fund (SWF), have sued the Federal Government.
Their action followed the failure of the states and the central government to resolve the legality and propriety of the SWF through dialogue.
The suit came three years after the Federal Government opted for an out-of court settlement with the state, on the legality of the oil funds.
Before the Supreme Court yesterday, 23 of the 36 states filed a fresh application, praying for an injunction stopping the Federal Government from tampering with the funds domiciled in the Excess Crude Account.
Even deductions from the Federation Account by the Federal Government to execute some power projects and the railway modernisation scheme are being contested by the states.
The states also want their share of the monies from the sale of federal landed property and revenue generated by its parastatals and agencies.
They further asked the apex court to order the transfer of the funds in the Excess Crude Account into its (court’s) custody pending the determination of the substantive suit, where they challenged the constitutionality or legality of the Excess Crude Account.
The states are Kogi, Bauchi, Osun, Nassarawa, Rivers, Plateau, Ogun, Ekiti,
Lagos, Kwara, Borno, Imo and . Cross River
Others are Bayelsa, Yobe, Benue, Edo,
Taraba, Niger, , Gombe, Oyo and Sokoto. Kano