Court Blocks Allocation of Funds to Rivers Government Over 2024 Budget

By Dipo Olowookere

A Federal High Court sitting in Abuja has prohibited the federal government from releasing funds from the federation account to the Rivers State government.

In a judgement on Wednesday, Justice Joyce Abdulmalik held the state government has breached a constitutional requirement that stipulates that funds spent by the government must be approved by the state’s parliament.

Recall that in December 2023, Governor Siminalayi Fubara presented the 2024 Appropriation Bill to five members of the state House of Assembly loyal to him led by his current Chief of Staff, Mr Edison Ehie, who was then the Speaker.

This followed a misunderstanding between him and the 27 members of the House loyal to the Minister of the Federal Capital Territory (FCT), Nyesom Wike.

The lawmakers loyal to the immediate governor of the state defected to the All Progressives Congress (APC) and the faction loyal to Mr Fubara declared their seats vacant.

The 27 legislators, who elected Mr Martin Amaewhule, as the Speaker, in June 2024, gave the state governor an ultimatum to present the 2024 budget to them.

They argued that a judgement by Justice James Omotoso of the Federal High Court in Abuja in January 2024 clearly stated that the 2023 presentation and approval of Rivers State’s budget for this year were illegal.

The judge directed Mr Fubara to re-present the N800 billion budget titled the Budget of Renewed Hope, Consolidation, and Continuity, to a legally constituted House of Assembly led by Mr Amaewhule.

Some days ago, a Court of Appeal in Abuja upheld a previous ruling by the Federal High Court that invalidated the presentation and passage of the 2024 budget for Rivers State.

Today, the court asked the Central Bank of Nigeria (CBN), the Accountant General of the Federation, Zenith Bank and Access Bank from further allowing Governor Fubara to access funds from the Consolidated Revenue and Federation Account.

Justice Abdulmalik held that the receipt and disbursement of monthly allocations since January 2024 by the state government governor was an aberration and must stop.