Plans by the Federal Government to deduct $418 million from the bank accounts of the 36 states of the federation has been halted by the federal high court in Abuja
In a ruling by Inyang Ekwo, the judge, the FG was directed to suspend the planned action, pending the outcome of a suit brought before it by the governments of the 36 states.
The Governor of Ekiti State, Kayode Fayemi, stated that state governments will reject arbitrary deductions of funds by the federal government.
The lead legal counsel to the states, Jibrin Okutepa, informed Ekwo that the 36 states would be completely impaired if the FG deducts the huge amount from the bank accounts of the states.
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Okutepa said the FG had revealed the plan to deduct the $418 million from the accounts of states every month as part of debts for contracts allegedly executed for the states.
He, however, said that the 36 states’ attorneys-general have read the purported judgment displayed by the FG and found that the states were not parties to the court action which resulted in the judgment debt.
After listening to the arguments of the 36 states, Ekwo retrained the FG from deducting from the states in respect of the purported court judgment until all issues relating to it were fully determined.
Defendants in the matter include the attorney general of the federation, minister of finance, accountant general of the federation and all banks in Nigeria.
While adjourning the matter till November 30, Ekwo ordered the plaintiffs to serve all the relevant court processes on the defendants.
