Appeal Court overturns judgement halting federal allocations to Rivers

The Court of Appeal in Abuja has overturned a Federal High Court ruling that had prohibited the release of federal monthly allocations from the consolidated funds to the Rivers State Government.

In its judgment on Friday, a three-member panel of the appellate court determined that the Federal High Court lacked jurisdiction to adjudicate the case, which sought to withhold funds from the state on the grounds that the 2024 budget had not been formally presented to the Rivers State House of Assembly.

Justice Joyce Abdulmalik had, in an October 30 ruling, directed the Central Bank of Nigeria (CBN) and the Accountant General of the Federation to stop disbursing funds to the Rivers State Government over alleged constitutional breaches.

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She argued that the state’s current budget was not approved by a properly constituted legislative arm, thereby violating the law.

Displeased with the ruling, Rivers State Governor Siminalayi Fubara and the state government appealed to the Court of Appeal, seeking to overturn the judgment. They also requested a stay of execution, arguing that the ruling would harm the state’s economy and its residents.

In its decision, the appellate court, led by Justice Hamman Barka, agreed with the appellants that the Federal High Court lacked the jurisdiction to entertain the case. The panel ruled that matters concerning state appropriation fall outside the scope of the Federal High Court’s powers.

The appellate court noted that including federal agencies as parties in the case did not grant the Federal High Court unlimited jurisdiction. It held that the orders issued by Justice Abdulmalik were unconstitutional and void, emphasizing that the lower court had overreached its authority.

The appeal was allowed, and all orders previously issued by Justice Abdulmalik were set aside.

The original case was filed by a faction of the Rivers State House of Assembly led by Speaker Martin Amaewhule, which had challenged the legality of the 2024 budget presented by Governor Fubara. The faction argued that the budget was approved by an improperly constituted four-member legislative body loyal to the governor, following the alleged defection of 27 lawmakers to another party.

In her earlier ruling, Justice Abdulmalik declared the governor’s actions unconstitutional, stating that the Rivers State budget had not been lawfully passed by a legitimate House of Assembly. Consequently, she restrained the CBN, the Accountant General, and commercial banks from releasing further allocations to the state.

However, the Court of Appeal has now nullified this decision, reinstating the Rivers State Government’s access to federal allocations and emphasizing that the Federal High Court acted beyond its jurisdiction in the matter.