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Supreme Court Rejects States’ Demand for LNG Revenue Disclosure

Kehinde Fajobi

The Supreme Court on Friday dismissed a suit filed by Nigeria’s 36 states seeking to compel the federal government to account for earnings from liquefied natural gas (LNG) sales since 1999.

A seven-member panel, led by Justice Uwani Abba-Aji, ruled unanimously that the court lacked original jurisdiction to hear the case, marked SC/483/2020, with the Attorney General of the Federation (AGF) as the sole defendant.

Justice Mohammed Lawal Garba, delivering the lead judgment, upheld the AGF’s preliminary objection, stating that the issues raised in the suit had already been addressed in a prior Supreme Court case, Attorney General of Bauchi State v. Attorney General of the Federation.

He concluded that the suit amounted to re-litigating settled matters and struck it out.

“The Supreme Court lacks the original jurisdiction to preside over and determine the case as currently constituted,” Garba ruled.

The case revolved around demands by the states for the federal government to render a detailed account of earnings from its participation in LNG sales through the Nigerian National Petroleum Corporation (NNPC) and remit the proceeds into the Federation Account for redistribution.

The states also sought $17 billion in accrued dividends and other payments from LNG-related revenues, asserting that these funds were public money held in trust for the entire federation, including the Federal Capital Territory.

The states argued that under relevant laws, including Section 44(3) of the Constitution and the Petroleum Act, the ownership and control of natural gas and LNG revenues should benefit all tiers of government.

The panel, comprising Justices Abba-Aji, Emmanuel Agim, Simon Tsammani, Stephen Adah, and Jamilu Tukur, unanimously agreed with the lead judgment to dismiss the case for lack of jurisdiction.

This ruling marks the end of the states’ legal bid to compel the federal government to disclose LNG revenue details and pay the sums into the Federation Account.

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