The controversy surrounding the suspension of Rivers State’s October Federation Account Allocation Committee (FAAC) funds has taken a new turn, with the Nigerian government denying any halt in the disbursement process. This comes after initial reports suggested that the Central Bank of Nigeria (CBN) had frozen the state’s allocation, citing a court order.
Bawa Mokwa, spokesperson for the Office of the Accountant General of the Federation, initially confirmed that the suspension complied with an order by the Federal High Court in Abuja. However, in a subsequent statement, Mokwa clarified that FAAC allocations for October are still being processed and that Rivers State remains eligible for its share of funds, thanks to an appeal and a stay of execution order currently in place.
This legal tug-of-war stems from a Federal High Court ruling on October 30, 2024, that ordered the CBN to cease releasing allocations to Rivers State. Justice Joyce Abdulmalik ruled that Governor Siminalayi Fubara had violated constitutional provisions by implementing an unlawful 2024 budget passed by a four-member House of Assembly, which had been declared illegitimate by both the Federal High Court and the Court of Appeal.
The court further restrained the governor, the state’s Accountant General, and associated banks from accessing the state’s accounts until the budget was properly passed by a legitimate House of Assembly. The Rivers State House of Assembly, through Speaker Martin Chike Amaewhule, initiated the suit, arguing that the current budgetary process violated the 1999 Constitution.
In response to the ruling, Governor Fubara and his legal team have filed multiple appeals at the Court of Appeal in Abuja, seeking to overturn the lower court’s judgment. On Friday, the appellate court reserved its decision after consolidating five related appeals, with Justice Hamma Barka promising a judgment date to be communicated soon.
The dispute has also fueled speculation of political undertones, given the strained relationship between Governor Fubara and Nyesom Wike, the Minister of Federal Capital Territory and former governor of Rivers State. Some observers suggest the court order may have political motivations tied to this rivalry.
The ongoing legal battle has created uncertainty over Rivers State’s finances and governance. If the court ultimately upholds the Federal High Court’s ruling, the state could face significant financial constraints, potentially affecting public services and development projects. Conversely, a favorable ruling for Governor Fubara could restore the state’s access to federal funds but would still require addressing the constitutional questions raised about the 2024 budget.
As the case unfolds, it underscores the complex interplay between law, politics, and governance in Nigeria, with Rivers State caught in the crossfire.
