Three states, Bayelsa, Akwa Ibom and Rivers, have filed a N500 trillion law suit at the Supreme Court against the Federal Government challenging its negligence in execution of petroleum production contracts by multinationals operating in Nigeria.
They 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.
According to the originating summons filled on their behalf by Luscious Nwosu, SAN at the Supreme Court, the plaintive are praying the court to decide awarding them the stated sum as a statutory obligation imposed on the defendant in pursuant to Section 16 of the Deep Offshore and Inland Basin Production Sharing Contracts Act Cap D3 of the Laws of the Federation 2004.
They are also asking that the apex court determine whether there was a statutory obligation imposed on the Federal Government to adjust its share 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.
In addition, the three states are seeking a consequential order of the court to compel the Federal Government to adjust the share of the government of the federation in the additional revenue under all the production sharing contracts in Nigeria’s oil industry within the inland basin and deep offshore areas as approved by the defendant from the respective terms the price of crude oil exceeded $20 per barrel.
They also want the Federal Government to be compelled to calculate in arrears with effect from August 2003 as well as recover and pay immediately all outstanding statutory allocations due and payable to them from the said adjustment.
The six-man Supreme Court, led by Justice Bode Rhodes, has fixed November 14 for hearing of the suit.
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