The Court of Appeal in Abuja has overturned a ruling that had blocked the Central Bank of Nigeria (CBN) from disbursing monthly statutory allocations to Rivers State.
In a split decision of 2-to-1, the three-member panel of justices ruled that the Federal High Court in Abuja lacked the jurisdiction to hear the case that led to the restraining order.
The panel, led by Justice Hamma Barka, argued that the involvement of federal agencies in the case was insufficient to grant the Federal High Court the authority to rule on the matter.
The case, which concerned the state’s budget appropriation, should have been heard in a more appropriate court, the Appeal Court ruled.
As a result, the Appeal Court dismissed six appeals filed by those challenging the lower court’s ruling, including Governor Siminalayi Fubara and the Rivers State Government, who sought to nullify the high court’s orders.
However, Justice Adebukola Banjoko dissented, maintaining that the Federal High Court’s decision should stand.
The appeals, numbered 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, were consolidated and heard by the appellate court.
Governor Fubara had previously requested the Appeal Court to annul the high court order issued by Justice Joyce Abdulmalik on October 30, which had prohibited the CBN from allowing Rivers State to access its funds from the federal revenue account.
Fubara’s team, led by Mr. Yusuf Ali SAN, argued that the ruling was made in bad faith and should be nullified.
The original suit, filed by a faction of the Rivers State House of Assembly, led by Hon. Martins Amaewhule, called for the cessation of all federal monthly allocations to Rivers State.
The faction argued that Governor Fubara had failed to comply with a court order to present the 2024 state budget before them.
The Amaewhule faction, loyal to former Governor Nyesom Wike, had previously urged the lower court to stop the funds until the issue was resolved.
The Rivers State government countered that the Amaewhule-led group had forfeited their legitimacy as lawmakers by defecting from the Peoples Democratic Party (PDP) to the All Progressives Congress (APC).
Despite this, the high court ruled in favor of the Amaewhule faction, deeming them the legitimate representatives of the state’s assembly.
This decision was challenged and ultimately overturned by the Appeal Court.
In their application, the plaintiffs argued that the Governor’s actions, including unauthorized withdrawals from the state’s revenue, violated the Constitution.
They had sought the court’s intervention to ensure accountability and prevent further fiscal mismanagement.
The Appeal Court’s ruling restores the status quo, allowing the CBN to release the statutory allocations to the Rivers State government once again.
