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LEGALOIL & GAS

Court Directs FG To Pay Akwa Ibom, Rivers State $3 billion From Oil Revenue

BREAKING: Court Grants Bail To Sunday Igboho’s Aides

The Federal Government has been directed by a Federal High Court in Abuja to pay over $3 billion to the governments of Rivers and Akwa Ibom states as part of their revenue shares from crude oil sales.

The sum is part of the $62 billion claimed to have been recovered by the Federal Government from some oil exploration companies.

A Judge from the High Court, Justice Taiwo Taiwo, while delivering his judgment on Tuesday, stated that the notice of intention to defend the case without joining issues with the plaintiffs was a failure on the side of the government.

The Federal Government’s claim of inability to pay the money generated from crude oil sales was rejected by the court, adding that the defendant ought to have filed a defence explaining its position in the $62 billion oil earnings as required by law.

READ ALSO: Tax Reforms Important For Nigeria To Stimulate Economic Growth – World Bank

This comes a day after the Federal High Court awarded the sum of ₦82 billion in favour of Ibeno community, in Akwa Ibom State, against the Nigerian National Petroleum Corporation (NNPC) and Mobil Producing Nigeria over oil spillage.

Delivering the judgement, Justice Taiwo Taiwo, ordered that the sum must be paid within 14 days after which, 8 percent interest will be accurable on the principal sum, annually.

The judge held that the International Oil company and the industry’s regulator, NNPC, failed in the management of oil spills that led to environmental degradation in the communities.

About Author

Victor Okeh is a graduate of Economics from Lagos State University. He is versatile in reporting business and economy, politics and finance, and entrepreneurship articles. He can be reached via – [email protected]

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