The Supreme Court yesterday gave both the federal government and the 36 state governments more time to resolve the legal tussle which arose from the decision of the FG to transfer the sum of $1 billion (N 160 billion) from the Excess Crude Account to the recently created Sovereign Wealth Fund.
A full panel of the apex court led by Justice Christopher Chukwuma-Ene fixed November 22 for reports of settlement, after parties had briefed the court on the latest steps toward amicable settlement of the matter.
“The court shall, for the last time, indulge parties with the application for adjournment filed by the defendant. This matter is, therefore, adjourned to Nov. 22 for parties to brief the court on the finality of the settlement option. The court shall, however, commence hearing of the case if agreement was not reached on that date,’’ he said.
The 36 states had, through their counsel Adegboyega Awomolo, SAN, instituted a suit challenging the legality of the FG’s action.
The decision of the apex court was as a result of the passionate appeal by the FG, through its counsel Austin Alegeh, SAN, that it is genuinely committed to settling the matter out of court.
Alegeh had earlier informed the seven-man panel of the court headed by Justice Chukwuma-Eneh that the series of attempts made by the FG aimed at resolving the dispute amicably had started yielding fruits.
He said, “We are happy to report that the settlement moves have started yielding results. We received, only last week, new proposed terms of settlement by the plaintiffs and the attorney-general is currently studying the new proposed terms of settlement and we believe now, more than ever before, that the settlement move is yielding very useful results.”
He therefore pleaded with the court to further extend time for parties to reach an amicable resolution of the disputes and to adjourn the matter to enable them actualise the settlement process.
Responding, Awomolo reminded the court that the plaintiffs had approached the court since 2008 over the issue and that there had been discussions, offers, counter offers and moves to resolve the matter.
He however expressed gladness over the presumed genuine commitment by the Federal Government to resolve the matter and promised that his clients will embrace such moves.
However, Awomolo drew the attention of the court to the fact that it was report of settlement or definite hearing of the matter on its merit that was scheduled for the day. He told the court that he was prepared to go ahead with the hearing in the matter.
The court, however, declined to commence hearing in the matter, noting? that such a move will undermine the current attempt towards settling the matter amicably.
The court also noted that delving into the substance of the case will cast doubts on the genuineness of attorney-general of the federation Mohammed Bello Adoke’s commitment to settle the matter.
The governments of the 36 states had approached the court seeking? an order compelling the Government of the Federation to pay into the Federation Account the sum of N5.51 trillion being the balance of the money that accrued to the central purse between 2004 and 2007 from the proceeds of crude oil sales, petroleum profits tax and oil royalties.
The FG had classified such earnings as “excess crude proceeds” and “excess PPT and royalties” which were paid into an account termed the “Excess Crude Account”.
The governors also want the apex court to order the FG to transfer to the Federation Account all sums standing to the credit of the Excess Crude Account.
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