CONSTITUTIONAL LAW ā State Creation ā Succession to Assets and Liabilities Upon State Creation
Principle Statement
By section 7(1) of Decree No. 41 of 1991, properties and chattels lying within newly created Abia State were transferred to Abia State. Abia State becomes owner of such properties. Benefits derived must be borne with the burden tied up with such properties and chattels that devolved on Abia State.
Ratio Decidendi (Source)
Per Ejiwunmi, JSC, in A.G., Abia State v. A.G., Federation & Ors (2005) NLC-123-245-2003(SC) at pp. 36ā37; Paras EāB.
"It follows therefore that by the provisions of section 7(1) of Decree No. 41 of 1991, which created Abia State from the old Imo State, properties and chattels lying within the newly created Abia State were transferred without any further assurance to Abia State i.e. the plaintiff. Abia State therefore becomes the owner of such properties and chattels. Now, as owners of such properties and chattels and which they have not denied, they were therefore available for the use and enjoyment of the State as part of its economic development. Benefits derived therefore must also be borne with the burden that were tied up with such properties and chattels that devolved on Abia State."
Explanation / Scope
Assets transferred to a newly created State come with associated liabilities. The principle of succession applies to State creation. The rule ensures that benefits cannot be taken without corresponding burdens.
