FG Takes New Position On Allocation To Rivers

The Federal Government has dismissed allegations that it has ceased disbursing funds to Rivers State following a recent court order.

GWG.ng reports that on Friday, the Office of the Accountant General of the Federation (OAGF) clarified its stance amid reports of Rivers State withheld allocations.

Bawa Mokwa, the OAGF spokesperson, confirmed that the October revenue payment to Rivers State had been delayed due to a Federal High Court ruling. He emphasized that the government is adhering to the court’s directive, stating, “The federal government will obey the court order on the matter of Rivers State’s allocation. As long as there is no contrary order, due diligence will be followed.”

However, Mokwa later clarified that the disbursement process for October’s allocation was ongoing and that Rivers State would receive its share due to an appeal and stay of execution order.

GWG.ng reports that the controversy stems from an October 30 ruling by Justice Joyce Abdulmalik of the Federal High Court, Abuja, which barred the Central Bank of Nigeria (CBN) from releasing funds to Rivers State. The court ruled that Governor Siminalayi Fubara’s handling of the state’s 2024 budget violated constitutional provisions, as the budget was passed by a four-member House of Assembly—a move deemed unlawful.

The suit, filed by the Rivers State House of Assembly and its Speaker, Rt. Hon. Martin Chike Amaewhule, resulted in an injunction preventing Governor Fubara and state officials from accessing funds from the Consolidated Revenue and Federation Account until a proper budget is passed by a legitimate House of Assembly.

Governor Fubara’s defense team, led by Yusuf Ali (SAN), has filed appeals challenging the Federal High Court’s decision. On Friday, the Court of Appeal in Abuja consolidated five related appeals and reserved judgment, with a date yet to be announced.

The legal battle adds another layer to the political rift between Governor Fubara and the Minister of the Federal Capital Territory, Nyesom Wike. Observers speculate that the ongoing crisis could have wider implications for governance and federal-state relations in Rivers State.

Background of the Dispute

The Federal High Court declared the Rivers State 2024 budget unconstitutional, citing its passage by an incomplete House of Assembly. Justice Abdulmalik ruled that funds from state accounts held with Zenith Bank and Access Bank could not be withdrawn until the budget is approved by a properly constituted Assembly.

The plaintiffs in the case—Rivers State House of Assembly and its Speaker—argued that Governor Fubara’s actions disregarded established constitutional processes. The case has escalated tensions in Rivers State, drawing national attention as stakeholders await the Court of Appeal’s final decision.
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