The Federal Government has dismissed claims that it has ceased disbursing funds to Rivers State, rejecting allegations that it stopped releasing financial allocations to the state. These claims were initially sparked by the announcement from the Office of the Accountant General of the Federation (OAGF) on Friday, stating that the October revenue payment to Rivers State had been withheld due to a Federal High Court ruling. The statement had caused considerable concern, with many speculating that the state was being denied its rightful allocation amid the ongoing political tensions between Governor Fubara and the Minister of Federal Capital Territory, Nyesom Wike. However, the federal government has firmly denied these allegations of withholding funds.
Bawa Mokwa, the spokesperson for the OAGF, confirmed to journalists that while the October 2024 FAAC allocation had not been disbursed yet, the federal government would comply with the court order halting the allocation to Rivers State. Mokwa added that the government would resume disbursement only if a contrary court order is issued. He stated, “What I got is that the October 2024 FAAC has not been distributed yet. However, the federal government will obey the court order on the matter of Rivers State’s allocation.”
Mokwa also clarified that the disbursement process for the October 2024 monthly allocation is still ongoing, but Rivers State’s share will only be withheld until further legal clarifications are made. He further noted, “Due diligence will be followed as long as there is no contrary order,” reassuring that the process for disbursement is being carried out in accordance with existing legal frameworks. This clarification comes as the political rift between Governor Fubara and Minister Wike continues to escalate, overshadowing the state’s financial matters.
Speaking to Saturday Tribune, Bawa Mokwa, Director of Press in the Office of the Accountant General of the Federation, reiterated that the disbursement process for October allocations is still in progress and will include Rivers State because of a subsisting appeal/stay of execution order. He clarified that despite the ongoing political struggles, Rivers State is still legally entitled to receive its share of the federal allocation pending the outcome of the appeals in the court. The appeals concern five separate rulings made by the Federal High Court in Abuja, and one of them challenges the decision to bar the Central Bank of Nigeria (CBN) from releasing federal allocations to Rivers State.
On Friday, the Court of Appeal in Abuja reserved judgment on the five appeals related to the rulings made by the Federal High Court. These appeals include challenges to the Federal High Court’s decision to bar the Central Bank of Nigeria (CBN) from releasing the federal allocations to Rivers State. Presiding Justice Hamma Barka, who is handling the case, stated that the judgment date will be announced after the filing of all relevant documents and adoption of arguments by the involved parties. The appeals include CA/ABJ/CV/1277/2024, CA/ABJ/CV/1303/2024, CA/ABJ/CV/1293/2024, CA/ABJ/CV/1287/2024, and CA/ABJ/CV/1196/2024, all of which stem from Federal High Court rulings delivered on October 30 and October 2, 2024.
During the proceedings, Yusuf Ali, SAN, representing Rivers State Governor Siminalayi Fubara, requested the consolidation of the five appeals, a request that the court granted. The case revolves around the ongoing dispute about the legitimacy of the governor’s authority to manage and implement the state’s 2024 budget, which had been questioned by the Rivers State House of Assembly and its Speaker, Rt. Hon. Martin Chike Amaewhule.
Earlier, Justice Joyce Abdulmalik of the Federal High Court ruled on October 30 to halt the release of Rivers State’s monthly financial allocations, citing unconstitutional practices involving the state’s 2024 budget. Justice Abdulmalik declared that Governor Fubara’s presentation of the 2024 budget to a four-member House of Assembly violated constitutional provisions and must be stopped. As a result, the court restrained the CBN, the Accountant General of the Federation, and other financial institutions from releasing funds to Rivers State until the legal status of the budget was resolved. This ruling has been the focal point of the ongoing legal battles, with the Court of Appeal yet to determine its final stance on the matter.
In her ruling, Justice Abdulmalik noted that the 2024 Appropriation Bill had not been lawfully passed by the Rivers State House of Assembly and was, therefore, unconstitutional. She emphasized the need for all budget proposals to be presented and approved by the appropriate legislative bodies before any financial disbursements could occur. The suit filed by the Rivers State House of Assembly and Rt. Hon Martin Chike Amaewhule challenged the validity of the budget and the actions of the governor and his administration in accessing the state’s financial allocations. The case also involves the CBN, Zenith Bank, Access Bank, the Accountant General of the Federation, and several other stakeholders as defendants. Justice Abdulmalik’s ruling underscores the complex legal situation surrounding Rivers State’s governance and financial autonomy.
According to the Judge, “It is mandatory to present Appropriation Bills before the appropriate Houses of Assembly before legitimate disbursement and withdrawal can be made.” The court’s intervention underscores the importance of adhering to constitutional and legal guidelines in the management of state finances, especially in the context of ongoing political and legal struggles between the state government and federal authorities. The court has also issued an injunction preventing Governor Fubara and other state officials from authorizing withdrawals from the state’s accounts until the state’s budget is properly passed by the appropriate legislative body.
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