The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the oil-producing states in Nigeria for "failing to account for the spending of the oil derivation refunds of N625 billion recently paid to them by the Federal Government, including details and locations of projects executed with the money."
The federal government recently returned N625.43 billion to the states of Abia, Akwa Ibom, Bayelsa, Delta, Edo, Rivers, Ondo, Imo, and Cross River for oil extraction. The total included 13% in oil derivation taxes, subsidies, and SURE-P deposit refunds. The refunds apply to the period from 1999 to 2021.
Last Friday, SERAP filed a lawsuit in the Federal High Court in Abuja requesting that governors "disclose and widely publish the details of spending of the oil derivation refunds, subsidy, and SURE-P refunds."
SERAP is asking the court to "compel President Muhammadu Buhari to direct anti-corruption agencies to thoroughly investigate the spending of the public funds collected by the governors and, where appropriate, ensure the prosecution of suspected corrupt individuals and the recovery of the proceeds of corruption" in order to further fight corruption.
According to the petition, the governors are required to be transparent about how they spend oil derivation refunds, subsidies, and SURE-P refunds under the African Charter on Human and Peoples' Rights, the Nigerian Constitution of 1999 (as amended), and the Freedom of Information Act.
SERAP contends that state governors are not permitted to invoke the FISA exemption. Both the African Charter on Human and People's Rights and the Nigerian Constitution make it clear that governors must make this information accessible to the general public.
According to SERAP, “It is in the public interest and the interest of justice to grant this application. Nigerians are entitled to their constitutionally and internationally recognised human right to information.”
SERAP also cites the fundamental principle of democracy as the basis for the right of Nigerians to know how their tax dollars are being spent. Openness, transparency, and accountability are vital for the country’s democratic order, bolstered by citizens’ right to know.
Another point being made by SERAP is that “the public interest in obtaining the information about expenditures relating to the refunds outweighs any other interests. The oversight afforded by public access to such details would serve as an important check on the activities of the governors, and help to prevent abuses of the public trust.”
Lawyers Kolawole Oluwadare and Valentina Adegoke filed the lawsuit on behalf of SERAP, citing the following as grounds for doing so: “The Nigerian Constitution, Freedom of Information Act, and the country’s international obligations rest on the principle that citizens should have access to information regarding the activities of their government.”
“Disclosing details of the spending of the oil derivation refunds, subsidy and SURE-P refunds would allow Nigerians to scrutinise it, and to monitor the spending of the refunds to ensure that the money is not mismanaged, diverted or stolen.”
“The effective operation of representative democracy depends on the people being able to scrutinise, discuss and contribute to government decision making, including on the spending of the oil derivation refunds.”
“To do this, they need the information to enable them to participate more effectively in the management of public funds by their state governments.”
“Publishing the details of the spending of the refunds would ensure that persons with public responsibilities are answerable to the people for the performance of their duties including the management of refunds.”
“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights and article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information, including about how the oil derivation refunds are spent.
“By the combined reading of the provisions of the Constitution of Nigeria, the Freedom of Information Act 2011, and the African Charter on Human and Peoples’ Rights, applicable throughout Nigeria, there are transparency obligations imposed on the state governors to publish details of spending of the oil derivation refunds.”
“Under the 13 per cent derivation fund, Abia State received N4.8bn; Akwa-Ibom received N128bn; and Bayelsa got N92.2bn. Cross River got a refund of N1.3bn; Delta State received N110bn; Edo State received N11.3bn; Imo State, N5.5bn; Ondo State, N19.4bn; and Rivers State received 103.6bn.”
“On the 13 per cent derivation fund on deductions made by NNPC, Abia State received N1.1 billion; Akwa-Ibom, N15 billion; Bayelsa, N11.6 billion; Cross River, N432 million; Delta State, N14.8 billion; Edo State, N2.2 billion; and Imo State, N2.9, billion. Ondo State got N3.7 billion while N12.8 billion was paid to Rivers State.”
“The states also received N4.7 billion each, totalling N42.34 billion as refunds on withdrawals for subsidy and SURE-P from 2009 to 2015. The Federation Account also paid N3.52billion each as refund to local government councils on withdrawals for subsidy and SURE-P from 2009 to 2015.”
The court case has yet to be scheduled for a hearing date.