By Abiola Olawale
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit at Federal High Court in Abuja, seeking an order restraining President Muhammadu Buhari, the Federal Government and any other organization or institution, from borrowing an estimated N895bn from dormant accounts owned by Nigerians.
The suit is challenging the decision of government to target the unclaimed dividends and balances in dormant accounts, in line with the Finance Act of 2020.
According to SERAP, the decision of the Federal Government to take over the dormant accounts owned by Nigerians is unconstitutional and unlawful.
In suit number FHC/ABJ/CS/31/2021 filed on Friday, SERAP is seeking an order to restrain the defendants from borrowing and collecting Nigerians’ money and moving the same into the ‘Unclaimed Funds Trust Fund’.
The suit filed on behalf of SERAP by its Deputy Director Mr Kolawole Oluwadare and Adelanke Aremo, is arguing that the Federal Government has no right to borrow the unclaimed dividends and funds in dormant accounts without the knowledge and consent of the owners.
The suit further insists that any attempt to access funds from a lender without the knowledge and express consent of the lender will amount to stealing.
Joined as defendants are Abubakar Malami, Attorney General of the Federation and Minister of Justice; Senate President, Ahmad Lawan; Speaker of House of Representatives, Femi Gbajabiamila; and Minister of Finance, Zainab Ahmed.
According to SERAP, the federal government has repeatedly failed to ensure accountability in the spending of public wealth and resources.
The organization further demanded for accountability and transparency in public health spendings and resources such as recovered stolen public funds, loans, and revenues generated.
The suit partly reads, “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 absolutely no 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 government to stop systemic and widespread corruption in MDAs, cut waste and stop all leakages in public expenditures. The borrowing is also not in the public interest.”
“Respect for the right to property is 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 right to property is a sacred and fundamental right.”
“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 explicit agreement between the setlor and the trustee, for the benefits of the trust beneficiary. There must also be sufficient evidence of the setlor’s intention to create a trust. The relationship cannot be arbitrarily created. It can also not be forced or assumed unilaterally, which is exactly what the Federal Government 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 end result 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:
“A DECLARATION that the provisions of Section 60[3] and Section 77[1] and [2] of the Finance Act allowing the Federal Government 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.
“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 pursuant to Section 1[3] of the Constitution.
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.
AND ANY OTHER ORDER(S) that the Honourable Court may deem fit to make in the circumstance of this suit.”
