Rivers-State-Responds-to-Court-Ordered-Suspension-of-Allocation-Payments,-Outlines-Next-Steps-(Details)

Rivers State Responds to Court-Ordered Suspension of Allocation Payments, Outlines Next Steps (Details)

By Wisdom Tide 

October 31, 2024


The Rivers State Government has announced plans to appeal a Federal High Court ruling that halted the Central Bank of Nigeria's (CBN) release of monthly allocations to the state. This judgment comes amid ongoing political friction within the state's legislative and executive arms.

Background of the Court’s Suspension of Allocations

The Federal High Court's decision to suspend allocation payments to Rivers State stems from issues related to the state’s budget approval process. Specifically, the court found procedural flaws in the recent approval process, leading to the withholding of funds. This situation adds a new dimension to an ongoing dispute between Governor Siminalayi Fubara and the Rivers State House of Assembly, led by Speaker Martin Amaewhule, an ally of Federal Capital Territory (FCT) Minister Nyesom Wike. Their political conflict has previously escalated to attempts to impeach the governor.

State Government’s Response and Appeal Plans

Following the court's ruling, Joseph Johnson, Rivers State’s Commissioner for Information, expressed the government's intent to challenge the decision in the Court of Appeal. Confident in the appeal's potential outcome, Johnson indicated that the state had anticipated this ruling and has already prepared for the appeals process.

“We foresaw this judgment unfolding as it did,” Johnson remarked, highlighting that the trial judge denied several critical motions, such as joining 23 council chairmen to the case, allowing the state to change legal representation, and addressing the jurisdictional challenge raised by the government. He added, “The judgment has already been appealed, and we believe the Court of Appeal will overturn it. We are not panicked; there is no cause for alarm.”

Judicial Findings and Constitutionality Concerns

The case centers on findings by Justice Joyce Abdulmalik, who noted that Governor Fubara’s presentation of the 2024 budget to only four members of the Rivers State House of Assembly violated Nigeria's Constitution. Additionally, the judge criticized the governor's continued spending of state funds without proper legislative approval, deeming it a “Constitutional violation.”

Justice Abdulmalik’s ruling directed the Central Bank, along with Zenith Bank and Access Bank, to restrict Governor Fubara's access to state funds until a budget is approved by a legitimately constituted House of Assembly. This restriction aims to prevent further expenditure without full legislative endorsement.

Legal Context: Parties Involved and Lawsuit Details

The suit was filed by the Rivers State House of Assembly, led by Speaker Amaewhule, against multiple defendants, including the Central Bank of Nigeria, Zenith Bank, Access Bank, the Accountant-General of the Federation, Governor Fubara, the Accountant-General of Rivers State, and the Rivers State Independent Electoral Commission (SIEC). The case challenges Governor Fubara's refusal to present the 2024 budget to the faction of the Assembly led by Amaewhule, in line with an earlier court order.

The outcome of this appeal could have significant implications for the state's governance and the balance of power within Rivers State. The government remains optimistic that the appellate court will overturn the judgment and restore access to critical funds for state operations

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