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Federal High Court Bars Release of Monthly Allocations to Rivers State

By MUHAMMED DANBABA

Court Ruling Affects State Funding Amidst Political Disputes

On Wednesday, the **Federal High Court** in Abuja issued a significant ruling preventing the Federal Government from releasing further monthly allocations to **Rivers State**. The judgement was delivered by **Justice Joyce Abdulmalik**, who specifically restrained the **Central Bank of Nigeria (CBN)** from allowing the state to withdraw funds from the consolidated revenue account.

Background of the Case

This ruling follows a suit marked **FHC/ABJ/CS/984/24**, initiated by a faction of the Rivers State House of Assembly led by **Hon. Martins Amaewhule**. The defendants in the case included key financial institutions such as **Zenith Bank Plc**, **Access Bank Plc**, as well as the **Accountant-General of the Federation** (AGF), and prominent state officials, including **Governor Siminalayi Fubara** and the **Rivers Independent Electoral Commission (RSIEC)**.

Grounds for the Court’s Decision

The plaintiffs sought the court’s intervention to withhold all federal monthly allocations intended for Rivers State. Their request was based on allegations that Governor Fubara had failed to comply with a previous court order directing him to present the **2024 Appropriation Bill** to the Amaewhule-led faction of the House of Assembly.

In a prior ruling, the court, presided over by **Justice James Omotosho**, recognized Hon. Amaewhule as the authentic Speaker of the Rivers State House of Assembly. This decision invalidated the 2024 budget proposal that had been presented before a four-member faction of the Assembly led by **Hon. Victor Oko-Jumbo**. The Court of Appeal later upheld the high court’s decision in favor of the Amaewhule faction.

Allegations Against Governor Fubara

The Amaewhule-led faction accused Governor Fubara of unauthorized withdrawals from the consolidated revenue funds of Rivers State, claiming this action violated **Section 120** of the **1999 Constitution** (as amended). This section governs the management of state funds and emphasizes the need for legislative approval.

Implications of the Ruling

The court’s decision to bar further allocations to Rivers State could have significant implications for the state’s financial operations and governance. It reflects the ongoing political turmoil within the state’s legislative framework and raises questions about the administration’s adherence to judicial directives.

Conclusion

This ruling underscores the complexities surrounding governance and financial management in Rivers State, highlighting the tensions between different factions within the state assembly and the potential consequences of non-compliance with court orders. The situation remains fluid, and the repercussions of this decision will likely be closely monitored by stakeholders within and outside the state.

The recent ruling by the Federal High Court regarding Rivers State has significant political and administrative implications. Here are some key points to consider:

Political Context

1. **Factional Disputes**: The case highlights the ongoing political struggles within the Rivers State House of Assembly, particularly the division between factions led by Hon. Martins Amaewhule and Hon. Victor Oko-Jumbo. This division has roots in broader political rivalries and disagreements over governance and representation.

2. **Judicial Authority**: The court’s recognition of Hon. Amaewhule as the legitimate Speaker of the House demonstrates the judiciary’s role in resolving political disputes. This ruling followed a series of legal battles over the legitimacy of various factions within the assembly.

Legal Framework

1. **Constitutional Provisions**: The ruling is anchored in constitutional law, particularly Section 120 of the 1999 Constitution, which requires the state governor to seek legislative approval for the withdrawal of funds from state accounts. This provision aims to ensure transparency and accountability in the management of public finances.

2. **Court Orders and Compliance**: The court’s decision to bar further allocations stems from allegations that Governor Fubara ignored previous court orders regarding budget submissions. This non-compliance raises questions about the rule of law and the responsibilities of elected officials in adhering to judicial directives.

Financial Implications

1. **Impact on State Funding**: The barring of federal allocations could strain Rivers State’s financial resources, affecting public services and development projects. This situation may lead to challenges in meeting payroll obligations for state employees and funding essential services.

2. **Federal-State Relations**: The ruling may also impact the relationship between the federal government and Rivers State. The withholding of funds could be seen as a punitive measure, which may exacerbate existing tensions and complicate future negotiations over federal allocations.

Future Developments

1. **Potential Appeals**: It is possible that the state government could seek to appeal the ruling or find ways to address the court’s concerns regarding compliance. The outcome of such actions could further influence the political landscape in Rivers State.

2. **Public Reaction**: The ruling may elicit varied reactions from the public and political stakeholders. Supporters of the Amaewhule faction may view it as a victory for accountability, while those aligned with Governor Fubara might see it as an unnecessary interference in state governance.

3. **Ongoing Monitoring**: The situation will likely be closely monitored by both the public and political analysts, as it could set precedents for how similar disputes are handled in the future. The effectiveness of the judiciary in mediating political conflicts will also be scrutinized.

In summary, the Federal High Court’s ruling regarding Rivers State is a multifaceted issue that touches on legal, political, and financial dimensions. As developments unfold, the implications of this decision will continue to resonate within the state and beyond.

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