HomeUncategorizedCourt Halts Federal Allocations to Rivers State Amid Budget Controversy

Court Halts Federal Allocations to Rivers State Amid Budget Controversy

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The Federal High Court in Abuja has issued a ruling to stop the Federal Government from releasing monthly allocations to Rivers State, affecting funds from the consolidated revenue account. Justice Joyce Abdulmalik delivered this judgment, responding to a suit filed by a faction of the Rivers State House of Assembly, led by Martins Amaewhule.

The court restrained the Central Bank of Nigeria (CBN), Zenith Bank, Access Bank, and the Accountant-General of the Federation from allowing the state to access federal funds. The plaintiffs argued that Governor Siminalayi Fubara failed to comply with a previous court order requiring him to present the 2024 Appropriation Bill to their faction, undermining the legislative process.

In her ruling, Justice Abdulmalik noted that Governor Fubara had continued unauthorized withdrawals from the state’s consolidated revenue funds, violating constitutional provisions. She dismissed objections from the defendants, affirming her court’s jurisdiction to hear the case, given that both the CBN and the Accountant-General of the Federation are federal entities based in Abuja.

Justice Abdulmalik highlighted that the plaintiffs had the legal standing to challenge the governor’s actions, as they were directly affected by his exclusion of their faction from the appropriation process. The ruling also referenced a previous judgment that invalidated the state’s 2024 budget, which was presented to only a fraction of the Assembly’s members.

The judge emphasized the necessity for proper legislative approval of budgetary appropriations before any funds can be disbursed, declaring the current budget operated by Governor Fubara as illegal and unconstitutional.

Consequently, the court has issued injunctions preventing the withdrawal or use of funds from the Consolidated Revenue Account by the Rivers State Government until a legitimate budget is passed by the appropriate House of Assembly. This decision marks a significant development in the ongoing political and legal disputes in Rivers State.

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