A Federal High Court sitting in Abuja on Wednesday barred the Federal Government from deducting funds from the Federation Account to finance its own agencies that are recognized by the 1999 Constitution to benefit from such funds.
The judgment was given in ruling in a suit brought against the Federal Government by the Rivers State Government.
Ruling on the case, the court said it was illegal, unlawful and unconstitutional for the Federal Government to make direct allocations from the Federation Account to fund the Nigeria Police Fund.
Giving his ruling on the matter, Justice Ahmed Mohammed declared that section 161 and Section 162 of the 1999 constitution were glaringly breached by the Federal Government in making direct allocation to the Police Trust Fund from the Federation Account.
He declared that Section 4(1)(a) & (b) of the PTF Act 2019, which require the deduction 0.05 per cent of any funds in the Federation Account and 0.005 per cent of the net profit of companies operating in Nigeria to fund the police are unconstitutional.
He declared that Section 162 of the 1999 constitution makes it clear that only the federal, state and local governments shall be allocated funds directly from the Federation Account.
He upheld the suit instituted by the Rivers State government against the unjust deduction and ordered that the fund belonging to Rivers but used to fund Nigeria Police Trust fund by the Federal Government be refunded to the state.
He declined to extend the same benefit to other states in the federation, arguing that they were not parties to the suit and that Rivers State as the plaintiff in the matter did not file it on behalf of others.
Justice Mohammed agreed with counsel to Rivers State, Joseph Daudu (SAN), that where the provisions of the 1999 constitution are clear and unambiguous, they must be given their ordinary meanings.
Daudu argued and Justice Mohammed agreed with him that the Federal government’s interpretation of Section 4 of the Nigeria Police Trust Fund Act was wrong, to the effect that the Nigerian Police was established for the Federal Government alone and as such the funding was solely on the shoulders of the Federal Government.
The trial judge declared “I have carefully perused the issues raised by the plaintiff and I agree that no other person or entity is permitted to benefit direct fund allocation from the Federation Account.
“Section 4 of the Nigeria Police Trust Fund Act 2019 relied upon by the defendant to make direct fund allocation from the Federation Account is untenable as it runs contrary to section 162 (3) of the 1999 Constitution which expressly stated that the Federal Government, state governments and LGs shall derive direct fund allocation from the Federation Account”.
