Court Prohibits FG From Deducting N16Billion From Anambra Allocation Funds

The solution, according to the judge, does not lie in the minister “exercising unconstitutional powers of deducting at source monies due to the states, and in this case Anambra State, from the federation account.”

“Where a state has failed to make this payment, the state clearly has fallen foul of its constitutional obligation,” the judge said. “For a breach of the Constitution cannot be cured by another breach of the Constitution by another party, no matter how well motivated.”

The judge pointed out that none of the relevant provisions grants the Minister of Finance the authority to make deductions from a state’s statutory allocation from the federation account based on the state’s failure to transfer the local government areas’ share into the State Joint Local Government Account, citing Section 162(5) of the Nigerian constitution and the Allocation of Revenue (Federation Account Etc.) Act.

He said the federal government would require a court order to assist the local government areas recover their money.