Omirhobo prays court to void sections of Finance Act 2020

Seeking to transfer N895.5 billion unclaimed public funds to crisis intervention fund

Human right activist and lawyer, Chief Malcolm Omirhobo, has sued the Federal Government and 38 others at the Federal High Court, Lagos, challenging section 77 of the Finance Act 2020, which empowers Nigerian banks to transfer all unclaimed dividend of public limited liability companies quoted on the Nigerian Stock Exchange, totalling N895.5 billion, to crisis intervention fund.

He insisted that Section 77 of the Finance Act 2020, which empowers the 9th to 39th defendants to transfer all unclaimed dividends of public limited liability companies quoted on the Nigerian Stock Exchange worth N158 billion and all the unutilised amount in all dormant bank accounts maintained in or by deposit money bank worth N737.5 billion, totalling the sum of N895.5 billion, which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in bank accounts throughout Nigeria in lawful custody of the 9th to 39th defendants to a crisis intervention trust fund or any Trust, is unlawful.

According to him, such provision is in conflict with the provisions of Sections 1(1)(3), 4, (the second schedule, Legislative powers part I, exclusive legislative list and part ii, concurrent legislative list), 40 and 44 (1)(2)(h)(i) of the 1999 constitution and therefore illegal, unlawful, unconstitutional incompetent, invalid, null and void.

He wants the court to declare that by the construction and interpretation of the provisions of Section 44(1) of the 1999 Constitution, the applicant and Nigerian citizens are entitled to own moveable properties in Nigeria.

Omirhobo also prayed the court to declare that by the construction and interpretation of section 44(1) of the 1999 Constitution, dividends of public limited liability companies quoted on the Nigerian Stock Exchange and unutilised amounts in bank accounts maintained in or by deposit money banks belonging to the applicant and Nigerian citizens constitutes moveable property as contemplated by the constitution.
 
He prayed the court to also declare sections 75, 76, 77, 78 and 79 of the Finance Act 2020, as improper, illegal, unlawful.

He also seeks to get the court to declare as unconstitutional, any attempt by the federal government to compel, prosecute, convict and fine banks and registrars who did not transfer all unclaimed dividends of public limited liability companies quoted on the Nigerian Stock Exchange and all unutilised amounts in dormant bank accounts maintained in or by a deposit money bank, which has remained unutilized for a period of not less than six years from the date of declaring the dividend or domiciling the funds in bank accounts to a crisis intervention trust fund.