The Court of Appeal in Abuja has overturned a Federal High Court ruling that stopped the Central Bank of Nigeria (CBN) and the Accountant General of the Federation from releasing funds to the Rivers State Government. This decision comes as a major relief for the Rivers State Governor, Siminalayi Fubara, and his administration.
On October 30, Justice Joyce Abdulmalik of the Federal High Court in Abuja issued an order barring the CBN from releasing monthly allocations to Rivers State. The judge ruled that Governor Fubara had violated constitutional provisions by presenting the 2024 budget to an “illegitimate” Rivers State House of Assembly.
Justice Abdulmalik declared: “The Appropriation Bill for January to December 2024, being operated by the 5th defendant (Fubara), having not been passed by a lawful House of Assembly, is illegal, unlawful, and a subversion of the 1999 Constitution.”
She further stated that no disbursements or withdrawals could be made without proper approval from a legitimate state assembly.
In its decision on Friday, the three-member panel of the Court of Appeal, led by Justice Hamman Barka, disagreed with the Federal High Court’s ruling. The appellate court held that the lower court lacked the jurisdiction to preside over the case, as the matter involved state appropriation, which does not fall under federal jurisdiction.
“The mere listing of federal agencies does not confer unrestricted jurisdiction on the Federal High Court,” Justice Barka stated.
He added that the appropriation issue of a state should not have been entertained at that level.
The appellate court declared the Federal High Court’s orders as unconstitutional and void, emphasizing that it was wrong for Justice Abdulmalik to restrict Rivers State from receiving funds from its consolidated revenue account.
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The Court of Appeal’s ruling allows Rivers State to resume receiving its monthly allocations, a significant victory for Governor Fubara and his government. The decision also nullifies all previous orders by the Federal High Court that sought to hinder the state’s financial operations.
The ruling has been widely welcomed in Rivers State, with many viewing it as a step toward restoring stability and ensuring the continuity of government projects.
A spokesperson for the Rivers State Government said, “This is a victory for the people of Rivers State. The funds are critical for the development and welfare of the state.”