A group, Socio-Economic Rights and Accountability Project, has filed a lawsuit asking the Federal High Court in Abuja to restraint and stop President Muhammadu Buhari and the Nigerian Governors from borrowing an estimated N895bn from dormant accounts.
In it’s an argument, SERAP, quoting ‘the Finance Act, 2020’ stated that it was unlawful, unconstitutional and discriminatory to take unclaimed dividends and balances in the form and accounts.
Due to the provision of the recently signed Finance Act, 2020, the law empowers the federal government to borrow from the two sources.
Part of the law provides that, “Any unclaimed dividend of a public limited liability company quoted on the Nigerian Stock Exchange and any unutilised amounts in a dormant bank account maintained in or by a deposit money bank, which has remained unclaimed or unutilised for not less than six years from the date of declaring the dividend or domiciling the funds in a bank account, shall be transferred immediately to the trust fund.”
Empowered by the law, the Federal Government has made a move to borrow unclaimed dividends and dormant account balances owned by Nigerians in any bank in the country.
SERAP also disclosed that the same ‘legislation explicitly excludes dormant official bank accounts by all branches of govt & their agencies.’
It’s statement reads;
‘We’re seeking an order of perpetual injunction restraining and stopping President Buhari from demanding, taking over, borrowing, and collecting Nigerians’ money in the form of their unclaimed dividends and funds in dormant accounts or transferring and moving the money into a trust fund known as ‘Unclaimed Funds Trust Fund.
Nigerian Governor should not be allowed to borrow Nigerians’ money.
Borrowing unclaimed dividends & funds in dormant accounts owned by ordinary Nigerians would negatively affect their right to an adequate standard of living, and access to clean water, quality healthcare & education.
Despite Nigeria’s dwindling oil revenue, the growing level of public debt,& widespread poverty, public officers including the President, Vice President, governors & their deputies,& members of the National Assembly have refused to cut their emoluments, allowances &security votes.
At the same time, millions of Nigerians continue to bear the brunt of mismanagement and corruption.
Joined in the suit as Defendants are: Mr Abubakar Malami SAN, Attorney General of the Federation and Minister of Justice; Senate President, Ahmad Lawan; Speaker of House of Representatives, Femi Gbajabiamila; Minister of Finance, Budget and National Planning, Ms Zainab Ahmed.
For there to be a borrower, there must be a lender. The intention to enter into such a boa borrower-lender relationship must be known to both parties.
Any other arrangement that allows a borrower to access funds from a lender without the knowledge and express consent of the lender will amount to stealing.
The Federal Government has repeatedly failed to ensure transparency and accountability in the spending of public wealth and resources such as recovered stolen public funds, and the loans so far obtained, estimated to be $31.98bn and failed to address the systemic and widespread corruption in ministries, departments and agencies (MDAs By the combined reading of section 44(1) of the Nigerian Constitution 1999 (as amended) and Article 14 of the African Charter on Human and Peoples’ Rights, the Federal Government has ao right to borrow Nigerians’ money in the form of their unclaimed dividends and funds in dormant accounts without their knowledge and express consent.
The move to borrow Nigerians’ money amounts to unlawful expropriation, as it is neither proportionate nor necessary, especially given the unwillingness or inability of the govt to stop systemic & widespread corruption in MDAs, cut waste and stop all leakages in public expenditures.
The borrowing is also not in the public interest.
Respect for property rights important to improve the enjoyment of other basic human rights and to lift Nigerians out of poverty.
There is a limit on the ability of any government to interfere with private property without legal justification. The property right is sacred and fundamental Borrowing unclaimed dividends and funds in dormant accounts without due process of law and the knowledge and explicit consent of the owners is arbitrary, and as such, legally and morally unjustifiable. To create a valid trust relationship, there must be an explicit agreement between the settlor and the trustee, for the benefits of the trust beneficiary. There must also be sufficient evidence of the settlor’s intention to create trust.
The relationship cannot be arbitrarily created. It can also not be forced or assumed unilaterally, which is exactly what Nigeria Governor is pushing to do in this case.
According to the Nigerian Bureau of Statistics (NBS), “four in ten Nigerians or over 82.9 million Nigerians live in poverty.
Where agencies of government are allowed to operate at large and at their whims and caprices in the guise of performing their statutory duties, the insult will be anarchy, licentiousness, authoritarianism and brigandage leading to the loss of the much cherished and constitutionally guaranteed freedom and liberty.
SERAP is also seeking the following reliefs:
1. A DECLARATION that the provisions of Section 60[3] and Section 77[1] and [2] of the Finance Act allowing the Federal Govt under the leadership of President Buhari to borrow Nigerians’ money in the form of unclaimed dividends and funds in dormant accounts and transferring the money into the “Unclaimed Funds Trust Fund” is unlawful, unconstitutional and a breach of Nigerians’ fundamental human rights particularly the right to property.
2. A DECLARATION that the provisions of Section 60[3] and Section 77[1][2] of the Finance Act, being inconsistent with section 44[1] of the Nigerian Constitution, is therefore null and void to the extent of its inconsistency puunderection 1[3] of the Constitution.
3. AN ORDER of perpetual injunction restraining the Defendants, or any other organisation, institution or officer[s] acting under their instruction or control, from demanding, collecting or transferring unclaimed dividends and funds in dormant accounts of beneficiaries and account holders into Unclaimed Funds Trust Fund.
4. AND ANY OTHER ORDER(S) that the Honourable Court may deem fit to make in the circumstance of this suit.
No date has been fixed for the hearing of the suit.
