LEGAL PRINCIPLE: CONSTITUTIONAL LAW — Revenue Allocation — Section 162(3) — Distribution Only to Three Tiers of Government
PRINCIPLE STATEMENT
Section 162(3) of the 1999 Constitution requires that only the three tiers of government—Federal Government, State Governments, and Local Government Councils—shall be the first-line beneficiaries of the Federation Account.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in A.G., Abia State & Ors v. A.G., Federation (2003) NLC-2272002(SC) at p. 83; Paras B–D.
"The modification made in the Order by the President was by virtue of Section 315 of the Constitution... In respect of the distribution of the amount standing to the credit of the Federation Account, all that Section 162(3) of the 1999 Constitution demands compliance with by any law on Allocation of Revenue is that only the three tiers of government shall be the first line beneficiaries, namely the Federal Government, the State Governments and the Local Government Councils. This is what in effect the modification Order made by the President has achieved."
EXPLANATION / SCOPE
Only three tiers of government are first-line beneficiaries. The principle applies to revenue allocation. The Constitution mandates this distribution. The rule is clear and unambiguous. Any law to the contrary must be modified. The principle is well-established.
