Nigerian Government Retracts Statement on Rivers State Allocation Amid Court Dispute.
The Nigerian government has reversed its earlier statement, clarifying that the allocation of funds to Rivers State has not been halted, despite reports suggesting otherwise.
The confusion stemmed from an earlier report by Ejes Gist News, which claimed that the government had suspended the October monthly Federation Account Allocation Committee (FAAC) payment to Rivers State due to a court order.
Breaking: FG Halts Payment Of FAAC Allocation To Rivers State
On Friday, the Nigerian government issued a statement refuting the claim, asserting that the allocation process remains ongoing. This clarification comes amidst an ongoing legal dispute between Rivers State Governor, Siminalayi Fubara, and the Minister of the Federal Capital Territory (FCT), Nyesom Wike.
Court Order and Disbursement Status
According to Bawa Mokwa, Spokesperson for the Office of the Accountant General of the Federation, the earlier report citing a court order halting payments was accurate at the time but did not reflect the current legal status. Mokwa explained that the court order, which previously blocked the Central Bank of Nigeria (CBN) and the federal government from releasing monthly allocations to Rivers State, is currently under appeal.
Mokwa further clarified that the disbursement of October’s allocations to all states and local governments continues as planned. Rivers State, therefore, remains eligible for the funds due to a subsisting appeal and a stay of execution order issued by the Court of Appeal.
Legal Background and Ongoing Appeals
The ongoing dispute has its roots in a series of appeals stemming from a Federal High Court ruling on October 30, 2024. The ruling, delivered by Justice Joyce Abdulmalik, barred the CBN from releasing federal allocations to Rivers State, following a decision that the state’s governor, Fubara, had violated constitutional provisions by presenting the 2024 budget to a four-member House of Assembly.
This decision led to a court injunction preventing further disbursement of funds from the Federation Account to Rivers State until the matter was resolved.
However, the Court of Appeal, Abuja Division, is currently reviewing five separate appeals related to this case. Justice Hamma Barka, who presides over the matter, indicated that judgments would be delivered on a future date after all relevant documents had been filed.
Political Tensions and Legal Developments
One of the appeals challenges the Federal High Court’s order halting the disbursement of funds to Rivers State. The Court of Appeal has reserved judgment on these appeals, including case numbers CA/ABJ/CV/1277/2024, CA/ABJ/CV/1303/2024, CA/ABJ/CV/1293/2024, and CA/ABJ/CV/1287/2024. Another appeal, CA/ABJ/CV/1196/2024, relates to a ruling from October 2, 2024.
In a related development, Yusuf Ali, SAN, representing Rivers State Governor Fubara, requested the consolidation of the appeals. The court granted this request, which could expedite the resolution of the matter.
Key Legal and Constitutional Points
The legal disputes revolve around the legitimacy of the budget presented by Governor Fubara and the actions of the four-member Rivers State House of Assembly that passed it. Justice Abdulmalik ruled that the assembly’s actions, deemed unconstitutional, rendered the 2024 Appropriation Bill illegal.
She further stated that the federal government’s disbursements to the state were unconstitutional until the budget was approved by a legitimate house.
The federal court’s ruling highlighted the importance of constitutional compliance in the budgetary process, stressing that Appropriation Bills must be presented and passed by the appropriate legislative body before any disbursement can occur.
This legal standoff has significant political implications, as it highlights the ongoing tensions between Governor Fubara and the federal government, particularly with figures like Nyesom Wike, who is heavily involved in the dispute.
What you should know.
While the Nigerian government initially indicated a halt in the disbursement of FAAC funds to Rivers State, it has now clarified that payments will continue due to the ongoing appeal. The resolution of this dispute hinges on the forthcoming rulings from the Court of Appeal, which will determine the fate of the state’s federal allocations.
