Court Strikes Out Ekiti’s Suit Challenging Deductions For Police Trust Fund

The Federal High Court in Abuja has struck out a suit filed by the Ekiti State Government challenging the Federal Government’s deduction of funds from the Federation Account to finance the Nigeria Police Trust Fund.

Justice Obiora Egwuatu delivered the ruling on Monday, describing the case as an abuse of court process. The judgment aligned with the preliminary objection raised by counsel to the Minister of Finance, Wale Edun, one of the defendants in the suit.

Ekiti State, through its Attorney General, had sought to restrain the Federal Government, the Minister of Finance, and other key officials from implementing Sections 4(1)(a) and 4(1)(b) of the Nigeria Police Trust Fund (Establishment) Act, which authorizes the deduction of 0.5% of total revenue accruing to the Federation Account.

The state argued that the Constitution does not permit such deductions or the direct levying of companies to fund a federal agency. Counsel to the plaintiff, O. O. Olowolafe, SAN, contended that the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) had wrongly advised on the deductions, allegedly violating constitutional provisions.

However, counsels for the defendants—including the Attorney General of the Federation, the Accountant General of the Federation, the RMAFC, and the Minister of Finance—argued that the deductions were legal, constitutionally backed, and previously adjudicated.

Henrietta Ekeng, counsel to the Finance Minister, noted that the core subject matter had already been determined in an earlier case—AG Rivers State v. AG Federation & Ors—where the court ruled on the same constitutional questions.

Justice Egwuatu, agreeing with the defense, held that the current suit replicated issues already resolved by Justice A.R. Mohammed in 2022 and posed a risk of conflicting judgments. He added that the continued litigation of the same matter by another state constituted a misuse of judicial resources.

“The use of judicial process becomes abusive when a party improperly employs it to the irritation and annoyance of their opponent, and to the detriment of the efficient and effective administration of justice,” the judge said.

Accordingly, the suit was struck out for lack of jurisdiction and abuse of court process.

In 2020, the Rivers State Government challenged the same provisions of the Nigeria Police Trust Fund Act, arguing that the deductions were unconstitutional. The Federal High Court, in its January 2022 ruling, declared the deductions illegal but did not halt further remittances, leading to continued controversy and legal challenges from other states.