Court of Appeal Clears Path for Rivers State Government to Access Funds

Our reporter

The Court of Appeal in Abuja has overturned a ruling that had previously blocked the release of funds to the Rivers State Government. The decision effectively removes all restrictions on the Central Bank of Nigeria (CBN), the Accountant General of the Federation, and other financial institutions from disbursing allocated funds to the state.

 

A three-judge panel, led by Justice Hamman Barka, ruled that the Federal High Court, which initially issued the restraining orders, lacked the legal authority to intervene in the matter.

The appellate court declared that the previous ruling by Justice Joyce Abdulmalik, which prohibited the disbursement of monthly federal allocations to Rivers State, was unconstitutional.

 

Justice Barka emphasized that it was inappropriate for the lower court to restrict the Rivers State Government’s access to funds from the Consolidated Revenue Fund. The appellate court found that the orders issued by Justice Abdulmalik overstepped judicial boundaries.

 

The case stems from a ruling made in October 2024, when Justice Abdulmalik had declared that the actions of Rivers State Governor Siminalayi Fubara, including his presentation of the 2024 state budget before the Rivers State House of Assembly, were unconstitutional. She had labeled these actions as a violation of the 1999 Constitution, leading to the restrictions on the state’s funds.

 

The Court of Appeal’s ruling lifts the restrictions, allowing the Rivers State Government to resume receiving its rightful share of federal allocations, marking a significant legal victory for the state administration.