Court Orders CBN to Halt Financial Allocations to Rivers State Over Budget Violations

The Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to cease all financial allocations to the Rivers State government, citing constitutional violations by Governor Siminalayi Fubara. The judgement, delivered on October 30, 2024, follows a lawsuit filed by the Rivers State House of Assembly, which challenged the legality of the budget presented by Fubara before a four-member assembly.

Background of the Case

Justice Joyce Abdulmalik presided over the case and found that Fubara’s actions regarding the state budget represented a “constitutional somersault” and an aberration that could not be permitted to continue. The court highlighted that since January 2024, Fubara had been receiving and disbursing monthly allocations without a legally approved budget, violating the provisions of the 1999 Nigerian Constitution.

The judge specifically pointed out that Fubara’s presentation of the 2024 budget before a limited assembly was an affront to constitutional requirements. She stated that the governor’s implementation of an unlawful budget constituted gross violations of his oath to uphold the constitution.

Implications of the Ruling

As part of the ruling, Justice Abdulmalik issued an injunction prohibiting the CBN, the Accountant General of the Federation, as well as Zenith Bank and Access Bank, from allowing Fubara access to funds from both the Consolidated Revenue Account and the Federation Account until a legitimate budget is passed by an appropriate House of Assembly.

The court emphasised that it is mandatory for any appropriation bill to be presented before a duly constituted legislative body before any disbursement can occur. The ruling effectively halts all financial transactions related to state allocations until compliance with constitutional mandates is achieved.

Reactions and Political Context

The decision has sparked widespread reactions across social media, with many Nigerians weighing in on the implications for governance in Rivers State. Critics have expressed concerns about potential political manoeuvring and misuse of judicial power. Some commentators have called for accountability and transparency in how public funds are managed, while others have pointed fingers at former Governor Nyesom Wike, suggesting his influence may still linger in state politics.

Supporters of the ruling argue that it is a necessary step toward upholding constitutional order and ensuring that public officials adhere to legal frameworks governing governance and financial management.

As Governor Siminalayi Fubara faces mounting pressure to rectify his administration’s budgetary processes, this ruling serves as a reminder of the judiciary’s role in maintaining checks and balances within Nigeria’s political landscape. The outcome will likely have lasting effects on how state governments manage their finances and adhere to constitutional requirements moving forward.

By Joseph Johnston,
Youth Editor,
Egogonews Hub

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