Who Controls Recovered Loot? Apex Court Backs FG as States’ Case Falters
The Supreme Court has dismissed a suit filed by the 36 state governments and the Nigeria Governors’ Forum (NGF) challenging the Federal Government’s handling of recovered looted assets.
A seven-member panel of the apex court held unanimously that the case was wrongly filed. Delivering the lead judgment prepared by Justice Chidiebere Uwa and read by Justice Mohammed Idris, the court ruled that the subject matter fell within the jurisdiction of the Federal High Court, not the Supreme Court.
The plaintiffs had alleged that between 2015 and 2021, the Federal Government recovered approximately ₦1.84 trillion in cash, 167 properties, 450 cars, 300 trucks and cargoes, and 20 million barrels of crude oil—assets allegedly diverted instead of being paid into the Federation Account.
According to the plaintiffs, these assets were unlawfully channelled into the Consolidated Revenue Account (CRA) and other accounts not recognised by the Constitution.
They argued that the CRA is meant to receive only the Federal Government’s share from the Federation Account, as well as other specific federal revenues such as licence fees, land revenues, and returns from investments.
The suit further challenged the legality of the Asset Recovery Account and Interim Forfeiture Recovery Account, stating they contravened constitutional provisions.
Referencing Sections 162(1), 162(10), and 80 of the Constitution, alongside Section 2 of the Finance (Control and Management) Act, 1958, the plaintiffs maintained that recovered assets constitute national revenue and must be remitted to the Federation Account.
They urged the court to declare the diversion unconstitutional and to compel the remittance of the recovered assets—₦1.8 trillion in cash and ₦450 billion in non-cash assets—since 2015.
The states also sought an order compelling the President and relevant government officials to account for all unremitted assets and asked that the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) design a formula for distributing recovered assets among federal, state, and local governments.
