Rivers allocations: Appeal Court reverses judgment stopping release of funds

The Appeal Court in Abuja has set aside all orders made by a Federal High Court in Abuja restraining the Central Bank of Nigeria and the Accountant General of the Federation (AG-F) from further releasing financial allocations to the Rivers state government pending when a lawful appropriation act is passed by a validly constituted State House of Assembly.

In a judgment on Friday, a three- member panel, led by Justice Hamman Barka, held that the subject matter of the case was not within the jurisdiction of the Federal High Court because it related to the revenue of a state.

The Court of Appeal held that the appeal, filed by the Rivers State Government against the October 30 judgment by Justice Joyce Abdulmalik of the Federal High Court, Abuja, was meritorious.

Th appellate court allowed the  appeal and set aside all the orders made by the Federal High Court, stating that it was unconstitutional for the lower court to make orders restraining the Rivers State Government from receiving funds due to it from the Consolidated Revenue Fund.

The appellate court held that the lower court overreached itself in assuming jurisdiction over the case.

Justice Abdulmalik had, in the October 30 judgment,  also restrained Access Bank and Zenith Bank from allowing the Rivers State Government and the governor to make withdrawal from the state’s funds being held in the banks.

She held that the decision by Governor Siminalayi Fubara to present the Rivers State’s 2024 Appropriation Bill to a four-member Assembly, that was not properly constituted, should not be allowed to stand.

The judge noted that the issue about the legality of the budget purportedly passed by four members of the Rivers State House of Assembly, which Fubara claimed he had assented to, was declared invalid in a January 22 judgment by Justice James Omotosho of the Federal High Court in Abuja.

She also noted that in the same judgment, which was affirmed by the Court of Appeal in a judgment on October 10, Justice Omotosho found that Amaewhule is the authentic Speaker of the Rivers State House of Assembly.

Justice Abdulmalik held the decision by Fubara to present the 2024 Appropriation Bill of Rivers State before only four members of the state’s Assembly amounted to a gross violation of Section 91 of the Constitution.

The judge added that the decision of the four members of the House Assembly, purporting to have passed the Rivers State’s Appropriation Bill 2024, which Fubara said has been assented to cannot and must not be allowed to stand, having been passed in clear violation of sections 91 and 96 of the Constitution as it has been set aside by an order of the court which was recently affirmed by the Court of Appeal.

She held that sections 91 and 96 of the Constitution is a precondition without which the powers of the fifth defendant to present the 2024 financial year estimate of the revenue and expenditure before the House of Assembly cannot be properly exercised in accordance with section 121(1) of the Constitution

Justice Abdulmalik said: “Since there is nothing in the counter affidavits of all the defendants to suggest that the fifth defendant complied with the provisions of section 120(2)(3)&(4) and section 121(1) of the Constitution in presenting the Rivers State’s Appropriation Bill in respect of the 2024 financial year before a validly constituted House of Assembly, this court has an enormous duty to protect and guide the Constitution from unwarranted assault to curb the excesses of powers and infraction of constitutional order.

“Where there is dereliction of constitutional order as in this instant case, this court will surely not shy away from it sacred constitutional responsibility to do what it considered just in the circumstances,” she said.

Justice Abdulmalik proceeded to grant all the reliefs sought by the plaintiffs.

The October 30 judgment was on a suit filed by the Rivers State House of Assembly and  Martins Amaewhule (as Speaker) in which the plaintiffs alleged among others, unauthorized withdrawal and continued withdrawal of funds from the Rivers State Consolidated Revenue Funds Account by Governor Fubara.

Listed as defendants, in the suit marked: FHC/ABJ/CS/984/2024 are the CBN, Zenith Bank, Access Bank, the Accountant General of the Federation, the Governor of Rivers State, the Accountant General of Rivers State, Justice S. C. Amadi (Chief Judge of Rivers State), Justice Adolphus Enebeli (retired) who is the Chairman of the Rivers State Independent Electoral Commission and the Rivers State Government.

Source: The Nation