Federal Government: Rivers Will Receive Funds Pending Appeal Outcome
The Federal Government has dismissed claims that it has stopped disbursing funds to Rivers State, stressing its commitment to following legal processes. This statement comes in the wake of an ongoing legal tussle surrounding the state’s access to monthly federal allocations.
Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), clarified the government’s position on Friday. According to The Punch, Mokwa stated, “Since there is a notice of appeal, it has overridden the earlier court judgment. As it stands, we will obey the court order, and Rivers State will be paid.”
Background: The Federal High Court’s Ruling
The clarification follows an October 30 ruling by the Federal High Court in Abuja, which barred the Federal Government from disbursing funds to Rivers State. The judgment, delivered by Justice Joyce Abdulmalik, restrained the Central Bank of Nigeria (CBN) from allowing the state to draw funds from the consolidated revenue account.
The case, marked FHC/ABJ/CS/984/24, was brought to court by the Hon. Martins Amaewhule-led faction of the Rivers State House of Assembly. The plaintiffs alleged irregularities in the state’s financial management and sought an injunction to halt further allocations until their concerns were addressed.
Governor Fubara Appeals for Reversal
In response, Rivers State Governor Siminalayi Fubara has challenged the judgment, urging the Court of Appeal in Abuja to set it aside. Represented by a legal team led by Senior Advocate of Nigeria Yusuf Ali, the governor argued that the ruling was issued in bad faith and should be overturned.
Governor Fubara’s appeal, marked CA/ABJ/CV/1303/2024, was submitted alongside five other appeals related to the judgment. The consolidated appeals, including those filed by the Rivers State Government, the state’s Accountant-General, and Zenith Bank Plc, are being reviewed by a three-member panel of the appellate court, led by Justice Hamma Barka.
Legal Arguments and Next Steps
Fubara’s legal team maintains that the judgment from the Federal High Court undermines the state’s financial stability. The governor called on the appellate court to nullify the ruling and reinstate the state’s right to federal allocations.
The appeals include cases marked CA/ABJ/CV/1277/24, CA/ABJ/CV/1196/24, CA/ABJ/CV/1287/24, CA/ABJ/CV/1293/24, and CA/ABJ/CV/1360/2024. Justice Barka’s panel is expected to decide on the matter in the coming weeks.
Implications for Rivers State
The court battle has raised concerns over the potential economic impact on Rivers State, which relies on federal allocations to fund key government projects and services. While the Federal Government has assured compliance with legal directives, the outcome of the appeals will determine the state’s financial outlook in the months ahead.
As both parties await the appellate court’s decision, the legal wrangling underscores the tension between federal institutions and state governments in managing Nigeria’s financial system.
