Rivers, Bayelsa, Akwa Ibom sue FG over N500trn revenue loss

Kemi Adeosun

Court fixes Nov 14 for hearing

Rivers, Bayelsa and Akwa Ibom states yesterday dragged the Federal Government before the Supreme Court to challenge the loss of N500 trillion oil revenue to oil companies operating in Nigeria due to negligence in the execution of oil production contract. The states are asking the apex court to compel the Federal Government to implement section 162 of the 1999 constitution as it relates to oil revenue generation and sharing among the component parts of the federation.

In the originating summons, the plaintiffs through their counsel, Luscious Nwosu, SAN, prayed the Supreme Court to determine whether there is a statutory obligation imposed on the defendant pursuant to section 16 of the Deep Offshore and Inland Basin Production Sharing Contracts Act Cap D3 of the laws of the federation 2004.

The plaintiffs also want the apex court to determine whether there is a statutory obligation imposed on the Federal Government to adjust the share of the government of the federation in the additional revenue accruing under the various production sharing contracts approved by the defendant if the price of crude oil at any time exceeds $20 per barrel, in real terms, to such extent that the production sharing contracts shall be economically beneficial to the government of the federation.

Also, the plaintiffs are asking the court to determine whether the failure of the defendant to adjust the share of the government of the federation in the additional revenue accruing under the production sharing contracts it approved following the increase of price of crude oil in excess of $20 did not constitute a breach of the said section 16 of the Deep Offshore and Inland Basin Production Sharing Contracts Act.

They, therefore, asked the apex court for a declaration that there is a statutory obligation imposed on the defendant by section 16 of the Deep Offshore and Inland Basin Production Sharing Contracts Act.

The three states also sought a declaration that the failure of the defendant to adjust the share of government in the additional revenue in the production sharing contracts as variously approved following the increase of price of crude oil in excess of $20 constitute a breach of section 16 of the Deep Offshore and Inland Basin Production Sharing Contracts Act.

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