The Federal Government has refuted claims that it has halted the disbursement of funds to Rivers State, clarifying the situation amid an ongoing legal and political controversy.
The Office of the Accountant General of the Federation (OAGF) had earlier indicated compliance with a Federal High Court ruling, which ordered the suspension of October revenue payments to Rivers State. The court’s decision stemmed from the alleged constitutional violations in the state’s budget process.
Bawa Mokwa, spokesperson for the OAGF, affirmed the government’s commitment to respecting the court’s judgment. “While the October 2024 FAAC revenue is yet to be fully disbursed, the Federal Government will adhere to the court order concerning Rivers State until a contrary directive is issued,” Mokwa stated.
Court Rulings and Legal Proceedings
Justice Joyce Abdulmalik of the Federal High Court in Abuja had previously restrained the Central Bank of Nigeria (CBN) and other financial institutions from releasing funds to Rivers State.
The ruling was based on allegations that Governor Siminalayi Fubara presented and implemented a budget without approval from a legally recognized House of Assembly, deeming it unconstitutional.
The court held that the four-member assembly, which Governor Fubara relied on to approve the 2024 budget, lacked legitimacy. As a result, all financial activities under this budget were deemed illegal, with injunctions placed on accessing funds from the state’s accounts at Zenith Bank and Access Bank.
Appeals and Further Developments
The Rivers State Government, represented by Senior Advocate of Nigeria (SAN) Yusuf Ali, has appealed the Federal High Court’s rulings. On Friday, the Court of Appeal, Abuja Division, reserved its judgments on five related appeals. Justice Hamma Barka announced that the court would communicate the judgment date after all submissions were reviewed.
In a notable development, the Court of Appeal has granted the consolidation of the five appeals, streamlining the legal proceedings.
Federal Government Clarification
Speaking to the Saturday Tribune, Mokwa emphasized that the disbursement process for October allocations is ongoing and clarified that Rivers State would benefit due to a subsisting appeal and stay of execution order.
The Federal Government’s adherence to judicial rulings reflects the constitutional checks and balances in resolving political and administrative disputes. However, the resolution of these legal challenges remains pivotal in determining Rivers State’s access to its financial allocations moving forward.