Rivers State to Receive Federal Allocation Despite Ongoing Legal Battle

The Federal Government has confirmed that Rivers State will continue to receive its federal allocation, despite the ongoing legal battle surrounding the state’s financial entitlements. According to the Office of the Accountant-General of the Federation (OAGF), the federal allocation will be disbursed to the state pending the final outcome of the legal process.

The OAGF’s Director of Press and Public Relations, Bawa Mokwa, stated that the office will adhere to court orders regarding the disbursement of federal allocations to Rivers State. “We are going to obey court order. Since there is a notice of appeal, the notice of appeal has overridden the earlier court judgment. So far, it is a court order that we will obey; if there is a notice of appeal, Rivers will be paid,” Mokwa said.

The assurance comes amid a Federal High Court ruling on October 30, 2024, which directed the Central Bank of Nigeria to withhold further monthly allocations to Rivers State. The court ruled that Governor Siminalayi Fubara’s presentation of the 2024 budget to a four-member House of Assembly was unconstitutional.

Justice Joyce Abdulmalik, who delivered the judgement, stated that since January 2024, allocations received and spent by the state were based on an illegitimate budget, describing it as a “constitutional aberration.” The ruling raised questions over the legitimacy of the State House of Assembly’s composition and its authority to approve budgets.
The Rivers State Government swiftly filed a notice of appeal against the ruling, which effectively overrides the earlier court decision. The state Commissioner for Information and Communications, Joseph Johnson, expressed optimism that the Appeal Court would upturn the judgment.

Johnson stated that the judgment had been appealed, and the state government was unperturbed as they had already instituted an appeal against the Federal High Court’s judgment. “The pointers to the anticipated judgment were glaring,” Johnson said.
The OAGF’s confirmation that the appeal effectively overrides the earlier court decision ensures that allocations to the state will continue pending the final outcome of the legal process. This development is a significant relief for the Rivers State Government, which has been embroiled in a legal battle over its financial entitlements.
The legal battle began when a Federal High Court ruled that Governor Fubara’s presentation of the 2024 budget to a four-member House of Assembly was unconstitutional. The court also directed the Central Bank of Nigeria to withhold further monthly allocations to the state government.

The ruling was a result of a suit filed by the State House of Assembly faction led by Martin Amaewhule, challenging the legitimacy of the four-member faction loyal to Fubara. The Amaewhule-led Assembly faction had earlier declared in July that all state expenditures would be halted until the governor resubmitted his budget to the legitimate legislative body.

Justice Abdulmalik denied a request to stay the proceedings, dismissing the application as “frivolous and vexatious.” She also refused to recuse herself from the case, rejecting the defence’s allegations of bias.
The Rivers State Government’s appeal against the ruling is currently pending, and the outcome will determine the final fate of the state’s financial entitlements.