N500bn oil derivation suit: FG seeks out-of-court settlement

BY IKECHUKWU NNOCHIRI
ABUJA – The Federal Government, yesterday, asked a Federal High Court sitting in Abuja to discontinue further hearing on the suit filed before it by 21-traditional rulers of mineral producing communities, seeking a release of N500 billion hitherto allocated to the Niger Delta between 2001 and 2009.

The Niger Delta monarchs, who approached the High Court under the aegis of the Traditional Rulers of Oil Mineral Producing Communities of Nigeria, TROMPCON, contended that the sum, which they said formed part of the statutory funding contribution of the Federal Government to the Niger Delta Development Commission, NDDC, for the aforementioned years, was withheld by former President Olusegun Obasanjo whilst he was in office.

Consequently, they urged the trial court to not only declare the action of the former President Obasanjo illegal and unconstitutional, but  also direct the Attorney General of the Federation, AGF, Minister of Finance and Federal Ministry of Finance, to remit  N484,450,551,137.91, to the NDDC, same being the difference between the statutorily generated 15% total amount from the federation account, as prescribed in the NDDC Act, between 2001 and 2009.

The Chief Judge of the Federal High Court, Justice Ibrahim Auta, who is presiding over the case, had on March 15, slated yesterday to commence hearing on the suit.

Meanwhile, at the resumed hearing of the case yesterday, government lawyer, Mr I. Jegede, and that of the plaintiffs, Mr Friday Iziyon, informed the trial court that President Goodluck Jonathan had ordered an immediate out-of-court settlement of the matter.

The duo, therefore, sought an adjournment to enable all the parties in the case  perfect the out-of-court settlement terms, even as they expressed optimism that the negotiations would have been completed before August 8, when the case was yesterday adjourned.

According to counsel to the plaintiffs, Mr Iziyon, “the parties are trying to embrace an out-of-court settlement of the case and negotiation in this direction is currently on top level.

“The Presidency is directly perturbed over the development and has already ordered the Attorney General of the Federation to draft the settlement plan. We are waiting the outcome of the letter, which is why we are pleading this honourable court for a short adjournment to enable us perfect the process and file our report of settlement.”

The Niger Delta monarchs had in their suit, sought “an order of perpetual injunction restraining the defendants from further withholding the said amount and any other statutory allocation due for disbursement for the speedy development of the oil mineral producing communities of  Niger Delta states of the federation.”

In a 24-paragraphed statement of claim they filed through their counsel, Dr Alex A Izinyon, SAN, the litigants averred that the communities under their domain had witnessed relatively stagnated development projects under the mandate and supervision of the NDDC, with little or no immediate impact on their basic infrastructural need.

They maintained that “the slow pace of developmental projects being carried out under the supervision of the NNDC, 4th Defendant, in the Niger Delta, is attributable to inadequate disbursement of funds to the commission for the development of the area”.

They told the court that between 2001 and 2009, the Minister of Finance and the Ministry of Finance, released the sum of N202, 202, 568, 107.00 only, as funds contribution from the federation account to the NDDC, out of a total of N686, 653, 441, 244.92, being the actual 15% statutory allocation which ought to have been paid from the federation accounts to the NDDC.

“Over the years, the oil mineral producing communities have suffered untold hardship both in their economic activities and living conditions due to the impact of oil exploration activities on their environment.

“The effect of the non release of these funds for the development of this area led to youth restiveness, rise in crime rate, militancy, kidnapping, joblessness and lack of social amenities: clean water, health care, roads, markets and food in the Niger Delta region.

“It is hypocritical and against the benefit of the electorate of the Federal Government represented by the 1st to 4th Defendants to make all these deductions and yet fail to address the deplorable conditions in the area as stated above.

“If the money is released, it will go a long way in solving the perennial problems and crisis bedeviling the region. It would serve the interest of justice for this honourable court to pronounce on the legality or otherwise of the act of the 2nd, 3rd and 4th Defendants in withholding the said funds meant for the development of the Niger Delta region and order the immediate release,” they added.