Federal govt gives condition for release of Rivers allocation

The Federal Government has given a condition for Rivers State to receive allocation accrue to the oil-rich state from the federation account.

A Federal High Court in Abuja last month restricted the Central Bank of Nigeria (CBN) from releasing federal allocations over Governor Siminalayi Fubara’s failure to present the 2024 budget to a properly constituted Rivers House of Assembly.

The judge, Joyce Abdulmalik, in the suit instituted by the pro-Wike lawmakers, held that Mr Fubara’s failure to present the budget to a properly constituted Rivers Assembly was a constitutional somersault and directed the CBN and the Accountant General of the Federation to stop releasing monthly allocations to Rivers State.

Appeal

Rivers State Government had filed an appeal praying the appellate court to vacate the trial court’s order, which it said was given in bad faith.

The appellate court on Friday reserved judgement on the suit.

In compliance with the trial court judgement, the Office of the Accountant General of the Federation announced a halt to payment of federal allocations to the Rivers state.

Appeal overrides judgement – FG

About 24 hours after announcing a halt to payment of federal allocations to Rivers State Government, citing the trial court judgement, the spokesperson for the Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa, said Rivers will be paid its allocations.

Mr Mokwa told Punch newspaper that the federal government would obey the trial court order, but allocations would be released to the oil-rich state if the state appealed the judgement.

“Since there is a notice of appeal, the notice of appeal has overridden the earlier court judgement. So far, it is a court order that we will obey; if there is a notice of appeal, Rivers will be paid,” Mr Mokwa said.

Background

Rivers State has been enmeshed in a political crisis since last year after a group of lawmakers loyal to Nyesom Wike, the FCT minister and the immediate-past governor of the state, attempted to impeach Mr Fubara.

Messrs Fubara and Wike are at loggerheads over the control of the political structure in the oil-rich state.

The crisis split the State House of Assembly into two factions – a 27-member faction is loyal to Mr Wike while four others are loyal to Mr Fubara.

The seats of pro-Wike lawmakers were declared vacant following their defection to the All Progressives Congress.

Edison Ehie, then-speaker of the Fubara-backed faction, had, after declaring the seats of the pro-Wike lawmakers vacant, received Governor Fubara, who presented the N800 billion 2024 budget to them for consideration.

Mr Fubara had, within 24 hours after the presentation, signed the budget into law, prompting a legal challenge from the pro-Wike lawmakers.