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Court Stops CBN from Disbursing Monthly Allocations to Rivers State

Justice Joyce Abdulmalik halts CBN's monthly allocations to Rivers State, citing constitutional breaches by Governor Fubara in the 2024 budget presentation
Rivers State Allocations

In a decisive ruling, Justice Joyce Abdulmalik of the Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to cease monthly financial allocations to the Rivers State Government. This directive follows findings that Governor Siminalayi Fubara’s budget proceedings, since January, allegedly contravened constitutional requirements.

Justice Abdulmalik stated that Fubara’s presentation of the 2024 budget to only four members of the Rivers State House of Assembly was an “affront” to constitutional provisions, branding it an “aberration” that undermined the rule of law. Subsequently, the court also prohibited Zenith Bank, Access Bank, and the Accountant General of the Federation from enabling Fubara to withdraw funds from the Consolidated Revenue and Federation Accounts.

Earlier, the Court of Appeal had upheld an October Federal High Court judgment that nullified Rivers State’s N800 billion 2024 budget, citing procedural irregularities. It dismissed Fubara’s appeal, noting he had withdrawn his counter-affidavit in the initial proceedings, which barred him from appealing the decision. Justice Omotosho previously declared the budget process as “executive dictatorship,” urging Fubara to respect the rule of law over personal authority.

The legal directives stem from Fubara’s December 2023 budget presentation, where he submitted a budget titled “Budget of Renewed Hope, Consolidation, and Continuity” to a faction of only five lawmakers out of over 30. Justice Omotosho ordered Fubara to re-submit the budget to a properly constituted assembly under Speaker Martin Amaewhule, ensuring due legislative process.

As the situation develops, these rulings emphasize adherence to democratic governance in Rivers State’s budgetary and legislative procedures. Governor Fubara is now tasked with realigning his budget presentation and disbursement strategies within constitutional bounds, while the Federal High Court’s decision underscores the judiciary’s role in upholding constitutional law.

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