LEGAL PRINCIPLE: CONSTITUTIONAL LAW — Revenue Allocation — National Assembly’s Power to Prescribe Distribution of Federation Account
PRINCIPLE STATEMENT
The National Assembly has absolute power under the 1999 Constitution to enact legislation dealing with the manner revenue accruing to the Federation Account is to be distributed. The power is not limited and is to be exercised in such terms and manner as the National Assembly may prescribe, except as provided in the proviso to section 162(2).
RATIO DECIDENDI (SOURCE)
Per Uwais, CJN, in A.G., Adamawa State & Ors v. A.G., Federation & Ors (2005) NLC-1442004(SC) at pp. 40–42; Paras E–A.
"Any amount standing to the credit of the Federation Account shall be distributed among the Federal and State Governments and the Local Government Councils in each State on such terms and in such manner as may be prescribed by the National Assembly. … It is clear, by virtue of these provisions, that the National Assembly has absolute power under the 1999 Constitution to enact a legislation or a statute that deals with the manner in which revenue accruing to the Federation Account is to be distributed amongst the beneficiaries. The power is not limited since it is to be exercised by the National Assembly in such terms and manner as it may prescribe except as provided in the proviso to subsection 2 of section 162 of the Constitution."
EXPLANATION / SCOPE
The National Assembly has plenary power to prescribe Federation Account distribution terms and manner. This power is subject only to the proviso to section 162(2). The principle applies to constitutional law and revenue allocation. The rule grants legislative discretion over distribution formulae. States cannot challenge the National Assembly’s distribution power as long as constitutional limits are observed. The power is broad but not unlimited.
