States’ AGs berates FG for incorrect distribution of funds, urge FG to respect judicial process over Paris Club

The Body of Attorneys General of the States of the Federation (BOAGS), has expressed displeasure over what it calls, “the Federal Government’s incorrect distribution of funds” derived from the Electronic Money Transfer Levy (EMT Levy) to the Federal, State, and Local Governments.

According to them, it is in disregard of section 163 of the 1999 Constitution (as amended), and section 89A of the Stamp Duties Act.

This was part of a communique jointly issued and signed by the Chairman of the Body, Moyosore Onigbanjo (SAN), who’s the Attorney General and Commissioner for Justice, Lagos State as well as its Secretary, Dr. Abdulkarim Kana, the Attorney General of Nasarawa State.

The Attorneys-general announced this when they arose from a meeting held in Asaba, Delta State between 30th November and 2nd December 2022.

According to the communique, the SDA provides a sharing formula for the revenue derived from the EMT levy, with 15% of the revenue allocated to the Federal Government and Federal Capital Territory and the remaining 85% allocated to the State Governments.

The body insists that each Federating State must receive 85% of the levy derived from that State as the law provides.

“While we commend the financial sustenance of Local Governments, we counsel against the disregard of Constitutional and statutory provisions. Neither section 163 of the 1999 Constitution nor section 89A of the Stamp Duties Act (SDA –introduced through section 48 of the Finance Act 2020) countenance the disbursement of the EMT Levy to the Local Governments.”

The body also called on the Federal Government to cease any deductions from the States regarding the purported N418 Billion London/Paris Club Loan consultancy fee pending the final resolution of an appeal filed on behalf of the States.

It expressed displeasure at the Federal Government’s issuance of promissory notes despite the subsistence of an Appeal on the matter and added that its failure to respect the Judicial process and immediately cease any further deductions will foist a fait accompli on the Court.

The body also commended the National Assembly for the recent round of proposed Constitutional amendments, many of which devolve powers from the Federal Government to the States. It noted that devolution ensures that decisions are made closer to the local people, communities, and businesses they affect.

It urged all State Attorneys General that has not done so to advise their Houses of Assembly on each proposed amendment’s relative merits or demerits to facilitate informed decisions by the State Legislatures.