The Supreme Court has thrown out a lawsuit filed by all 36 Nigerian state governments and the Nigeria Governors’ Forum (NGF) challenging the federal government’s management of recovered looted funds.
In a unanimous decision delivered by Justice Mohammed Idris, the seven-member panel ruled that it lacked the jurisdiction to hear the matter, as such disputes should be brought before the Federal High Court.
The suit, marked SC/CV/395/2021, was dismissed on technical grounds, leaving the governors without legal recourse at the apex court.
At the heart of the legal battle was the allegation that the federal government, between 2015 and 2021, recovered over ₦1.8 trillion in stolen assets—including 167 properties, 450 cars, 300 trucks, and 20 million barrels of crude oil—but failed to remit them into the Federation Account, as constitutionally required.
Instead, the states accused the federal government of diverting the funds into the Consolidated Revenue Fund (CRF) and other unauthorised accounts. They argued that this violated constitutional provisions which mandate that all revenues—especially recovered loot—must be shared among the three tiers of government via the Federation Account.
Relying on sections 80 and 162 of the Constitution, and the Finance (Control and Management) Act, 1958, the states claimed the creation of asset recovery accounts such as the Interim Forfeiture Recovery Account by federal agencies was illegal.
The plaintiffs listed recoveries made by the EFCC, ICPC, Nigerian Police, and the Attorney-General’s office, alleging they bypassed constitutional processes. They had asked the court to compel the federal government to remit ₦1.8 trillion in cash and ₦450 billion in non-cash assets, and to order the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to design a framework for equitable sharing.
They also sought a full account of unremitted or unrecovered assets—calls that now remain unresolved, as the Supreme Court struck out the case on Friday due to jurisdictional constraints.
