The Nigerian government has made a sudden about-face, confirming that it will continue to disburse funds to Rivers State, despite an earlier claim that the October allocation had been halted.
This reversal comes amid a contentious legal battle between Rivers State Governor Siminalayi Fubara and the Federal Government, centered around a court ruling that temporarily stopped the disbursement of monthly Federation Account Allocation Committee (FAAC) payments to the state.
On Friday, News360 Nigeria reported that the Nigerian government, under the leadership of President Bola Tinubu, had suspended the October allocation to Rivers State, citing a court order as the primary reason.
The decision to halt the payments followed a Federal High Court ruling that barred the Central Bank of Nigeria (CBN) and the federal government from disbursing federal allocations to Rivers State.
In an initial statement, Bawa Mokwa, the spokesperson for the Accountant General of the Federation, confirmed that the action was in line with the court order, which had restrained the CBN and the federal government from releasing funds to the state.
However, in a surprising shift, Mokwa later clarified that the disbursement process for October’s FAAC allocation was still underway.
“The allocation process is ongoing,” Mokwa explained in a separate interview, adding that Rivers State would continue to benefit from the funds due to a subsisting appeal and a stay of execution order.
The confusion surrounding the disbursement of funds comes amidst a political storm in Rivers State, where Governor Fubara and the Minister of the Federal Capital Territory, Nyesom Wike, are locked in a public feud.
This dispute, which has spilled into the courts, has further intensified tensions between the state and the federal government.
The saga began with a series of legal battles over the legitimacy of the 2024 budget presented by Governor Fubara, which the Federal High Court ruled was in violation of the Nigerian Constitution.
On October 30, 2024, Justice Joyce Abdulmalik of the Federal High Court ruled that the state’s budget, presented by a four-member House of Assembly, was unconstitutional and illegal.
The court’s ruling effectively nullified the budget and barred Governor Fubara and the Rivers State government from accessing any funds from the Federation Account until the budget was approved by a legitimate House of Assembly.
Justice Abdulmalik also issued a restraining order preventing the CBN, the Accountant General of the Federation, and commercial banks like Zenith and Access Bank from allowing the Rivers State government to withdraw funds from its accounts.
The ruling also pointed out that the four-member Rivers State House of Assembly, which had approved the budget, lacked the constitutional legitimacy to do so, a decision that was upheld by both the Federal High Court and the Court of Appeal.
In response, the Rivers State government, represented by Governor Fubara’s legal team, immediately filed an appeal, challenging the court’s decision.
The appeals are currently pending in the Court of Appeal, Abuja Division, with five separate cases related to the political crisis in Rivers State.
One of the appeals challenges the earlier ruling that stopped the disbursement of monthly allocations to the state, while another appeals the legitimacy of the budget approval process by the Rivers State House of Assembly.
During the hearing, Rivers State’s legal counsel, Yusuf Ali, SAN, requested that the five appeals be consolidated, a motion that the court granted.
The Court of Appeal has yet to deliver a judgment on the appeals, though Justice Hamma Barka, presiding over the case, confirmed that the judgments would be delivered on a future date.
As the legal battle continues, the federal government’s decision to reverse its earlier stance has sparked mixed reactions.
While the government has assured that the disbursement of funds to Rivers State is continuing, the ongoing legal issues have raised questions about the stability of the state’s finances.
“The federal government’s decision to backtrack on its earlier stance is a relief, but the legal uncertainty surrounding the state’s budget still looms large,” said a political analyst, who spoke on the condition of anonymity.
The legal crisis has also brought into focus the broader challenges facing Nigeria’s federal system, particularly the delicate balance of power between state and federal authorities.
Despite the ongoing legal turmoil, the federal government’s move to ensure that Rivers State continues to receive its monthly allocation demonstrates its commitment to maintaining financial stability for the state.
“The federal government is determined to ensure that the funds continue flowing to Rivers State in compliance with the law,” said a source within the Ministry of Finance.
The court’s decision to withhold the state’s funds and the subsequent reversal by the federal government highlights the ongoing tensions between the two levels of government, which show no signs of abating soon.
In the meantime, the people of Rivers State, as well as local government officials, are left to navigate the uncertainty surrounding their financial future.
The situation remains fluid, with all eyes on the Court of Appeal, where the fate of the state’s allocation, and perhaps its political future, will be decided in the coming weeks.
