Court of Appeal Reserves Judgement on Fubara’s Suit Appealing Halting Of Rivers Monthly Allocations

The Court of Appeal in Abuja, on Friday, reserved its judgement in the suit filed by the Rivers State Governor, Mr. Siminalayi Fubara, seeking to void the judgement that barred the Central Bank of Nigeria (CBN) from releasing monthly allocations to Rivers State.

Also on Friday, the Office of the Accountant General of the Federation (OAGF) clarified that the Federal Accounts Allocation Committee (FAAC) shared the October federal revenue among the 36 states, including Rivers State, besides other statutory stakeholders.

A total sum of N1.411 trillion was on Wednesday shared by the three tiers of government and other stakeholders out of a gross revenue of N2.668 trillion available in the month of October 2024, 

The OAGF’s clarification came following the October 30 order by a Federal High Court, Abuja which had barred the CBN from further disbursing monthly allocations to the Rivers State government, citing alleged constitutional violations by Governor Fubara.

In a telephone conversation with THISDAY, on Friday, the Director (Press and Public Relations), Office of the Accountant General of the Federation, Bawa Mokwa, confirmed that at the November FAAC meeting which held in Bauchi on Wednesday, allocations were actually made to the 36 states of the Federation, including Rivers State, despite the court order.

However, a three-member panel of the appellate court announced that judgement was reserved shortly after listening to arguments from lawyers for and against the appeal.

The panel presided by Justice Hamma Barka, told the court that the judgement was reserved to a date that would be communicated to parties in the appeal.

The appellant had approached the Abuja Division of the Court of Appeal, to challenge the October 30 judgement of Justice Joyce Abdulmalik of the Federal High Court, Abuja, which halted further release of the state’s allocations until the governor presents the 2024 appropriation to the faction of the Rivers State House of Assembly, said to be loyal to the Minister of the Federal Capital Territory (FCT), Mr. Nyesom Wike.

Justice Abdulmalik had faulted Fubara’s presentation of the 2024 appropriation before a 4-member Rivers House of Assembly, describing the act as an affront to constitutional provision.

The Rivers State Speaker, Martin Amaewhule and 26 state legislators were said to have decamped from the Peoples Democratic Party (PDP) which sponsored them to office, to the All Progressives Congress (APC).

Based on their alleged defection, the governor argued that they were no longer members of the House of Assembly, and as such cannot preside over the state’s appropriation.

But, Justice Abdulmalik in her judgement recognised Amaewhule’s faction as the right legislators and granted their prayers to halt further release of allocations until the budget was presented to the 27 pro-Wike lawmakers.

She described the receipt and disbursement of monthly allocations since January this year by Governor Fubara as nothing short of a constitutional aberration that must not be allowed.

She also held that Fubara’s action in implementing unlawful budget stands as a gross violation of the 1999 Constitution he swore to protect.

Abdulmalik subsequently made an order restraining the CBN, Accountant General of the Federation, Zenith Bank and Access Bank from further allowing Fubara to access money from the Consolidated Revenue and Federation Account.

Earlier, the judge declared that the judgement of Rivers State High Court which ruled in favour of Fubara to implement the 2024 budget has also been set aside by the Court of Appeal, Abuja Division.

She noted that the CBN is under constitutional obligation to ensure that the Rivers House of Assembly is properly constituted as required in the constitution, before money from the consolidated revenue and federation account are released to the beneficiaries.

She said, “Appropriation Bill for January to December 2024, being operated by the 5th defendant (Fubara), having not been charged by the lawful House of Assembly is illegal, unlawful and subversion of the 1999 Constitution.

“It is mandatory to present the appropriation bills before the appropriate Houses  of Assembly before legitimate disbursement and withdrawal can be made.

However, Fubara argued that Justice Abdulmalik erred in law when she made the order halting release of allocations to the state.

The governor therefore prayed the panel to set aside the judgement of the lower court for being perverse.

He urged the court to grant his reliefs in the appeal marked CA/ABJ/CV/1303/2024, and vacate the judgement stopping the state allocations.

The panel consolidated five other appeals that emanated from the purported judgement of the high court- marked as: CA/ABJ/CV/1277/24, CA/ABJ/CV/1196/24, CA/ABJ/CV/1287/24, CA/ABJ/CV/1293/24 and CA/ABJ/CV/1360/2024.

Meanwhile, Mokwa, who had earlier informed an online publication that the Office of the Accountant General of the Federation would respect the court order, which barred the CBN, and the federal government from disbursing monthly allocations to the Rivers State government, told THISDAY  that the sharing among the 36 states was without prejudice to the court order as there are procedures.

He told the online publication: “What I got is that the October 2024 FAAC has not been distributed yet. However, the federal government will obey the court order on the matter of Rivers State allocation.

“We are going to follow due diligence as long as there is no contrary order. In case there is a contrary, the status will remain.

“The process of disbursement of the October 2024 monthly allocation is ongoing.”

But making clarifications on the matter, he told THISDAY that after the monthly FAAC meeting, it takes about 10 days for the CBN to process and credit the account of each state/stakeholder.

This, he noted, meant that although allocations have already been made to the 36 states in the last FAAC meeting, no state has had its account credited yet until the CBN concludes every necessary process.

However, he disclosed that the OAGF had just been served with a notice of appeal by the state against the October 30 Federal High Court order.

In the notice of appeal which was sighted by THISDAY, the Rivers State Government appealed against the October 30 ruling by Justice Joyce Abdulmalik of a Federal High Court in Abuja.

Fubara, in his appeal, urged the Justice Hamma Barka-led panel to overturn the lower court’s judgment, urging it to vacate the order withholding the state’s allocations.

Following the appeal, the Court of Appeal, Abuja Division, on Friday, reserved judgement in the suit filed by Governor Siminalayi Fubara to overturn the ruling which barred  the CBN from  further  monthly allocations to Rivers State.

Justice Abdulmalik had issued the order  restraining the CBN, Accountant General of the Federation, Zenith Bank, and Access Bank from allowing Fubara to access funds from the Consolidated Revenue and Federation Accounts.

During the proceedings on Friday, the three-judge special panel reserved judgement in the case following the adoption of the parties’ submissions.

The panel also consolidated five other appeals arising from the original high court decisions.

They include: CA/ABJ/CV/1277/24, CA/ABJ/CV/1196/24, CA/ABJ/CV/1287/24, CA/ABJ/CV/1293/24, and CA/ABJ/CV/1360/2024.

Justice Barka announced that judgement would be reserved and communicated at a later date to the parties involved.

With the appeal by the Rivers State Government against the High Court order barring monthly allocations to the state, it is not clear whether or not the CBN will process and credit the account of the state with the already shared October federal allocation.

But the OAGF said it would adhere to court orders to the letter– whether the orders direct it to go ahead with the Federal High Court ruling or to stay execution

Alex Enumah and Ndubuisi Francis

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