The Court of Appeal in Abuja overturned a Federal High Court ruling that had halted the release of federal monthly allocations to the Rivers State Government.
Recall that a Federal High Court sought to withhold the state’s funds due to the alleged non-presentation of the 2024 appropriation bill before a legitimate Rivers State House of Assembly. It ruled the seizure of the statutory allocation of the state, much to the ire of stakeholders.
Now, the appellate court, in a judgment delivered by a three-member panel led by Justice Hamman Barka, held that the trial court lacked the jurisdiction to entertain the suit in the first place.
The Details on the First Ruling
The initial ruling by Justice Joyce Abdulmalik, delivered on October 30, had restrained the Central Bank of Nigeria (CBN) and the Accountant General of the Federation from disbursing funds to Rivers State, citing a constitutional breach.
Justice Abdulmalik argued that the state’s budget had not been passed by a duly constituted legislature, making its implementation unlawful. The judgment was as a result of a suit filed by a faction of the Rivers State House of Assembly, led by Martin Amaewhule, and it contested the validity of the 2024 appropriation presented by Governor Siminalayi Fubara to a four-member faction of the assembly loyal to him.
Rivers State Government Appeals
Immediately, the Rivers State Government and Governor Fubara appealed the ruling, asserting that it would harm the state’s economy and residents. They contended that the Federal High Court had overstepped its bounds, as the appropriation of a state budget is not within its jurisdiction.
The appellate court agreed, stating that merely including federal agencies in the suit did not grant the trial court jurisdiction. The panel ruled that issues related to state appropriation should not have been adjudicated by the Federal High Court.
In setting aside Justice Abdulmalik’s orders, the appellate court declared them unconstitutional, null, and void due to the lack of jurisdiction. It criticized the lower court for exceeding its authority and upheld the Rivers State Government’s appeal.
Rulings Part of a Larger Dispute
The initial ruling and the Appeal Court intervention are a part of a brewing dispute in the Rivers state government. The dispute stemmed from a division in the Rivers State legislature following the defection of 27 lawmakers from the People’s Democratic Party (PDP). This split led to a faction loyal to the Minister of the Federal Capital Territory, Nyesom Wike, and another faction supporting Governor Fubara.
The Amaewhule-led faction claimed that the budget presented to the smaller, rival faction was unconstitutional and violated the principles of separation of powers.
Justice Abdulmalik had previously ruled in favor of the Amaewhule faction, declaring the 2024 budget invalid. She held that Governor Fubara’s reliance on a Rivers State High Court decision, which had been overturned by the Court of Appeal, to present the budget was unlawful.
The Federal High Court further criticized Fubara’s actions as gross violations of the 1999 Constitution and issued an injunction against the release of federal funds to the state.
The Court of Appeal’s judgment, however, reversed these findings, restoring the Rivers State Government’s access to its monthly federal allocations.
