In a major legal victory for the Rivers State government, the Appeal Court in Abuja has ruled that the Central Bank of Nigeria (CBN) and the Accountant General of the Federation must release funds owed to the state.
This ruling came after the three-member panel, headed by Justice Hamman Barka, found that the lower court lacked the jurisdiction to prevent the release of these funds.
The Appeal Court decision has overturned all earlier orders from Justice Joyce Abdulmalik of the Federal High Court, who had restrained the CBN and other financial institutions from allowing Governor Siminalayi Fubara access to the state’s funds.
Justice Barka’s panel ruled that the issue of state revenue falls under the jurisdiction of the Rivers State government and not the federal courts.
“This court finds that the subject matter of the case does not belong within the jurisdiction of the Federal High Court,” Justice Barka said in the judgment.
The legal battle began in October, when Justice Abdulmalik of the Federal High Court declared that Governor Fubara’s handling of the state’s finances violated the Nigerian Constitution.
The judge’s ruling blocked the release of monthly allocations to Rivers State from the Federation Account, as well as the state’s share of the Consolidated Revenue Fund.
Justice Abdulmalik claimed that the Rivers governor’s actions amounted to a “breach of the Constitution” and ordered the CBN, Zenith Bank, and Access Bank to stop releasing funds to the state.
She stated that the governor’s presentation of the 2024 state budget to a four-member House of Assembly was an unconstitutional move and warned that such actions could not be allowed to continue.
According to the lower court, the Rivers government had violated the provisions of the 1999 Constitution, which outlines how state funds should be managed and distributed.
However, the Appeal Court sharply disagreed with the Federal High Court’s ruling, stating that it was an overreach of judicial authority.
“The lower court overstepped its bounds by intervening in matters of state revenue,” the panel said.
The Appeal Court’s ruling is seen as a significant victory for Governor Fubara and his administration, who have been under legal and political pressure since the case began.
Governor Fubara, in a statement following the ruling, expressed his gratitude for the judgment and reiterated his commitment to the welfare of Rivers State.
“I am pleased that the Appeal Court has affirmed the position of the Rivers State government,” Governor Fubara said. “This is a victory for our people, as it ensures that we can continue to receive the resources needed to develop our state.”
The Rivers State government has faced challenges in managing its finances since the Federal High Court’s ruling in October, with the state’s revenue streams temporarily cut off. This victory paves the way for the state to access vital funds once again.
Legal experts have described the Appeal Court’s judgment as a crucial reinforcement of state autonomy in Nigeria’s federal system.
“This ruling underscores the importance of respecting the constitutional roles and powers of state governments,” said Professor Chijioke Nwankwo, a legal analyst. “The federal courts must not overstep their jurisdiction in matters that are clearly within the domain of state governments.”
The case has drawn significant attention in legal and political circles, as it touches on the delicate balance of power between state and federal authorities in Nigeria. The decision is also expected to have implications for future legal disputes involving the management of state funds.
The Federal High Court’s initial order had created a tense situation for the Rivers government, leading to questions about the independence of state governments in managing their resources.
While the Appeal Court’s ruling provides a temporary respite, observers are closely watching whether similar cases will emerge in the future, as Nigeria continues to navigate issues of governance, revenue distribution, and the autonomy of state governments.
Rivers State now looks forward to resuming normal operations, with its governor and officials expressing relief at the resolution of the legal issue.
As the state government prepares to resume access to its funds, the ruling also serves as a reminder of the ongoing legal battles between state and federal authorities in Nigeria’s complex governance structure.
Governor Fubara’s administration will now focus on implementing the state’s development plans with renewed access to the funds it is entitled to.
“This is a clear indication that the Rivers State government will continue to make progress despite attempts to undermine our constitutional rights,” Governor Fubara concluded.
The outcome of this case is likely to reverberate through Nigeria’s political landscape, particularly in the context of federal-state relations and the governance of state resources.
