Court Stops CBN Allocation to Rivers State

In a recent ruling, the Federal High Court in Abuja ordered the Central Bank of Nigeria (CBN) to cease monthly allocations to Rivers State, citing constitutional violations allegedly committed by Governor Siminalayi Fubara.

On Wednesday, Justice Joyce Abdulmalik determined that Governor Fubara’s submission of the 2024 budget to a four-member House of Assembly contravened constitutional requirements. Justice Abdulmalik highlighted that Rivers State has been receiving and utilizing allocations since January based on what she described as an “illegitimate” budget—a significant “constitutional aberration.”

The court’s order also restricts fund disbursements from the CBN, the Accountant General of the Federation, and Rivers State’s accounts at Zenith Bank and Access Bank. Justice Abdulmalik underscored that the governor bypassed constitutional procedures for budget approval by failing to seek endorsement from a fully constituted House of Assembly.

Ruling in suit FHC/ABJ/CS/984/2024, Justice Abdulmalik declared actions by the four-member assembly loyal to Fubara as void, referencing prior judgments from the Federal High Court and Court of Appeal that nullified the assembly’s authority.

The judge emphasized that CBN must ensure budgetary appropriations are authorized by a constitutionally recognized legislative body before releasing funds, stating, “Any appropriation bill must pass through the constitutionally recognized House of Assembly; otherwise, budget implementation is unlawful.”

Justice Abdulmalik further ruled that Fubara’s actions violated Sections 91 and 96 of the 1999 Constitution, asserting that circumventing legislative processes undermines the rule of law.

This decision followed a suit filed by the faction of the Rivers House of Assembly led by Martin Amaewhule, contesting the validity of the Fubara-supported assembly. The Amaewhule-led Assembly had previously declared that all state spending would be frozen until the governor resubmitted his budget to the legitimate assembly.

Justice Abdulmalik dismissed a request to stay the proceedings, calling the application “frivolous and vexatious,” and rejected claims of bias from the defense, affirming her commitment to impartiality in the case.