“Rivers State Will Receive Allocation Despite Ongoing Case” — FG
The Federal Government has clarified its stance on the ongoing controversy regarding federal allocation to Rivers State. Contrary to some reports, the government has stated that it has not stopped the disbursement of funds to the state, even in light of the ongoing legal tussle.
Why Rivers State Will Still Receive Federal Allocation Despite Legal Báttle
The Federal Government has clarified her stance on the ongoing dispute regarding federal allocation to Rivers State. Contrary to some reports, the government has stated that it has not stopped the disbursement of funds to the state, even in light of the ongoing legal tussle.
Bawa Mokwa, the Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), addressed the matter on Friday. He emphasized the government’s commitment to upholding the rule of law. According to Mokwa, “Since there is a notice of appeal, the notice of appeal has overridden the earlier court judgment. So far, it is a court order that we will obey; if there is a notice of appeal, Rivers will be paid.”
This clarification comes in response to a Federal High Court judgment issued on October 30. The court, presided over by Justice Joyce Abdulmalik, had barred the Federal Government from releasing further monthly allocations to Rivers State. The judgment also restrained the Central Bank of Nigeria (CBN) from allowing the state to draw funds from the consolidated revenue account.
The legal battle was initiated by the Hon. Martins Amaewhule-led faction of the Rivers State House of Assembly, which filed suit FHC/ABJ/CS/984/24. However, the Federal Government has indicated that the filing of an appeal has effectively suspended the implementation of the high court’s judgment.
In a related development, Governor Siminalayi Fubara has taken the case to the Court of Appeal in Abuja, urging the court to overturn the judgment that restricted the CBN from releasing Rivers State’s monthly allocation. Represented by a team of lawyers led by Mr. Yusuf Ali, SAN, Governor Fubara argued that the lower court’s decision was made in bad faith and should be set aside.
Governor Fubara’s appeal, marked CA/ABJ/CV/1303/2024, was heard by a three-member panel of the appellate court led by Justice Hamma Barka. The governor’s legal team called for the nullification of the Federal High Court’s orders, which they described as irregular and unjust.
Interestingly, the appellate court consolidated five other appeals related to the same judgment during the session. These appeals were filed by various parties, including the Rivers State Government, the Accountant-General of Rivers State, and Zenith Bank Plc.
As the legal proceedings unfold, it remains clear that the Federal Government intends to comply with all court orders while ensuring that Rivers State continues to receive its federal allocation. This approach reflects a balanced commitment to the law and the economic well-being of the state.
The outcome of this legal battle will be closely watched, as it has significant implications not just for Rivers State but also for governance and financial administration in Nigeria. For now, Rivers State can rest assured that its monthly allocations remain secure, pending the resolution of the legal issues.
