Federal Allocation to Rivers State to Continue Despite Ongoing Legal Dispute

The Office of the Accountant-General of the Federation (OAGF) has confirmed that Rivers State will continue to receive its federal allocation, despite ongoing legal battles over the state’s financial entitlements.

Speaking on Friday, Bawa Mokwa, the Director of Press and Public Relations at the OAGF, emphasized the agency’s commitment to complying with court directives.

“We will obey court orders,” Mokwa stated. “Since a notice of appeal has been filed, it overrides the earlier judgment. Therefore, Rivers State will receive its allocation.”

This development follows a Federal High Court ruling on October 30, 2024, which directed the Central Bank of Nigeria (CBN) to suspend monthly allocations to Rivers State. The ruling stemmed from Governor Siminalayi Fubara’s presentation of the 2024 budget to a four-member House of Assembly, a move deemed unconstitutional by Justice Joyce Abdulmalik.

Justice Abdulmalik declared the budget process invalid, describing it as a “constitutional aberration” due to the Assembly’s incomplete composition. She further stated that expenditures based on the budget since January 2024 violated Sections 91 and 96 of the 1999 Constitution.

The judgment followed a suit filed by the Martin Amaewhule-led faction of the Rivers State House of Assembly, which questioned the legitimacy of the four-member Assembly loyal to Governor Fubara. The court also invalidated decisions made by the Fubara-supported Assembly, citing earlier rulings by the Federal High Court and Court of Appeal that annulled its authority.

In July, the Amaewhule-led faction had declared that state spending would be suspended until the governor submitted the budget to the fully constituted Assembly. The court denied an application by the Fubara faction to stay the proceedings, labeling it as “frivolous and vexatious.”

Despite the ruling, the Rivers State Government promptly filed an appeal, which effectively placed a hold on the lower court’s decision. The state’s Commissioner for Information and Communications, Joseph Johnson, expressed confidence that the Appeal Court would overturn the judgment, describing the legal process as a temporary setback.

With the notice of appeal in effect, the OAGF has clarified that allocations to Rivers State will proceed until a final decision is reached by the appellate court.