FG makes u-turn, says allocation to Rivers State Continues

The Nigerian government has backtracked, saying it has not halted the disbursement of funds to Rivers State, as the allocation process is continuing.

News360 Nigeria had on Friday reported that the President Bola Tinubu-led Nigerian government halted the October monthly Federation Account Allocation Committee (FAAC) revenue payment to Rivers State, citing a court order as the reason.

The development had come amid an ongoing dispute between Rivers State Governor Simi Fubara and the Minister of Federal Capital Territory (FCT), Abuja, Nyesom Wike.

According to Bawa Mokwa, Spokesperson for the Office of the Accountant General of the Federation, the decision to stop the payment is in respect of the court order, which bars the Central Bank of Nigeria (CBN) and the Nigerian government from disbursing monthly allocations to the Rivers State government.

But in another interview, Bawa Mokwa said that the disbursement of October allocations to states and local governments by the Federation Accounts Allocation Committee (FAAC) is still in progress.

Mokwa further explained that Rivers State would continue to benefit from the funds due to a subsisting appeal and a stay of execution order.

The Court of Appeal, Abuja Division, on Friday, reserved judgments in five separate appeals arising from a Federal High Court ruling on the political crisis in Rivers State. One of the appeals challenges the High Court’s decision that halted the Central Bank of Nigeria (CBN) from releasing federal allocations to the state.

The presiding justice, Justice Hamma Barka, announced that the judgments would be delivered on a date to be communicated to the parties, after all processes filed in the appeals were adopted by counsel.

The appeals, with case numbers CA/ABJ/CV/1277/2024, CA/ABJ/CV/1303/2024, CA/ABJ/CV/1293/2024, and CA/ABJ/CV/1287/2024, stem from the Federal High Court’s ruling on October 30, 2024. Another appeal, CA/ABJ/CV/1196/2024, challenges a judgment delivered by the same court on October 2, 2024.
During the hearing, Yusuf Ali, SAN, representing Rivers State Governor Siminalayi Fubara in appeal CA/ABJ/CV/1303/2024, requested the consolidation of the five appeals, a motion the court granted.
Earlier, on October 30, 2024, Justice Joyce Abdulmalik of the Federal High Court, Abuja, ruled that the CBN should cease releasing monthly allocations to the Rivers State government.

The court found that the receipt and disbursement of these funds by Governor Fubara since January 2024 constituted a constitutional violation.
Justice Abdulmalik specifically ruled that Governor Fubara’s presentation of the 2024 budget to a four-member Rivers State House of Assembly violated constitutional provisions.
She declared that the governor’s actions in implementing the unlawful budget represented gross violations of the 1999 Constitution, and issued an order restraining the CBN, Accountant General of the Federation, Zenith Bank, and Access Bank from allowing Fubara to access funds from the Consolidated Revenue and Federation Account.
The judge noted that the action of the four-member Rivers State House of Assembly, which had been used by Governor Fubara to justify the unlawful budget, had been nullified by both the Federal High Court and the Court of Appeal.

She further clarified that the Appropriation Bill for 2024, which Fubara was operating, was illegal and unlawful, as it had not been passed by the legitimate House of Assembly.

Justice Abdulmalik emphasized that Appropriation Bills must be presented to the appropriate House of Assembly before any legitimate disbursement or withdrawal can occur.

She also issued an injunction preventing Fubara, the state’s Accountant General, and their agents from authorizing any withdrawals from the state’s accounts at Zenith Bank and Access Bank until the budget was properly passed by the House of Assembly.

The suit, filed by the Rivers State House of Assembly and its Speaker, Rt Hon. Martin Chike Amaewhule, includes the CBN, Zenith Bank, Access Bank, the Accountant General of the Federation, the Rivers State governor, the Accountant General of Rivers, the Rivers State Independent Electoral Commission (RSIEC), and several judicial officers as defendants.