The Court of Appeal in Abuja has reserved judgment in the case filed by Rivers State Governor, Siminalayi Fubara, challenging a Federal High Court ruling that barred the Central Bank of Nigeria (CBN) from disbursing monthly allocations to the state.
The contentious October 30 ruling by Justice Joyce Abdulmalik followed allegations that Governor Fubara presented the 2024 budget to a faction of the Rivers State House of Assembly deemed unconstitutional.
Background of the Dispute
Governor Fubara had presented the 2024 appropriation bill to a four-member assembly loyal to him after the Speaker, Martin Amaewhule, and 26 lawmakers defected from the People’s Democratic Party (PDP) to the All Progressives Congress (APC).
Fubara argued that the defecting lawmakers no longer had legislative authority. However, Justice Abdulmalik ruled that the Amaewhule faction constituted the legitimate assembly and that presenting the budget to a smaller assembly violated the constitution.
The High Court order halted allocations to Rivers State until the appropriation bill was presented to the 27 pro-Wike lawmakers. Justice Abdulmalik also directed the CBN, Accountant General of the Federation (AGF), Zenith Bank, and Access Bank to block the governor’s access to funds from the Federation Account, citing constitutional violations.
Appeal and Consolidated Cases
Governor Fubara has appealed the ruling, describing it as flawed and urging the Court of Appeal to overturn the decision. His appeal also seeks to vacate the orders blocking state allocations’ release. The appeal panel, led by Justice Hamma Barka, consolidated five related cases and reserved judgment after hearing submissions from both sides. The judgment date will be communicated later.
OAGF Clarifies Allocation Process
Amid the legal tussle, the Office of the Accountant General of the Federation (OAGF) clarified that the Federal Accounts Allocation Committee (FAAC) distributed October’s federal revenue among all 36 states, including Rivers State. A total of ₦1.411 trillion was shared out of ₦2.668 trillion gross revenue generated in October.
Bawa Mokwa, Director of Press and Public Relations at the OAGF, explained that while allocations have been shared, actual crediting of accounts by the CBN takes about 10 days post-FAAC meetings. Thus, Rivers State has yet to receive its allocation due to ongoing procedural delays, compounded by the court order.
Implications and Next Steps
The legal challenge has created uncertainty about whether Rivers State will receive its October allocation. The OAGF has indicated its commitment to abiding by the courts’ rulings. If the Appeal Court vacates the High Court’s judgment, the CBN and other financial institutions would be free to process and release the state’s allocation.
This case underscores the complex interplay between governance, constitutional mandates, and judicial oversight in Nigeria’s federal structure.
