Court Halts CBN Allocations to Rivers State Following Budget Presentation Controversy
In a significant legal development, the Federal High Court in Abuja has issued an order preventing the Central Bank of Nigeria (CBN) from disbursing monthly financial allocations to the Rivers State Government. This decision, handed down on Wednesday by Justice Joyce Abdulmalik, calls into question the legitimacy of the 2024 budget presented by Rivers State Governor Siminalayi Fubara.
The court’s ruling is rooted in the claim that Fubara presented the 2024 budget to a mere four-member Rivers State House of Assembly, an action deemed by Justice Abdulmalik as a blatant contravention of the Nigerian Constitution. According to the judge, such a move undermines the democratic process and the legal requirements for budget approvals, casting doubt on the fiscal operations of the Rivers State Government since the beginning of the year.
Justice Abdulmalik described Governor Fubara’s actions since January as a “constitutional somersault and aberration,” insisting that the continued receipt and disbursement of federal allocations under the disputed budget framework violates the spirit of the 1999 Constitution. This decision signals a strict judicial stance on upholding constitutional procedures, especially in governance matters with significant financial implications.
Further, Justice Abdulmalik’s ruling extends beyond the CBN, also barring the Accountant General of the Federation, as well as Zenith Bank and Access Bank, from facilitating any transactions from the Consolidated Revenue and Federation Account on behalf of Rivers State. This comprehensive restriction effectively freezes the state’s access to federal funds, which are vital to its ongoing operations and commitments.
The suspension of financial disbursements raises critical concerns about the governance and legal frameworks within Rivers State, bringing into focus the legitimacy of Governor Fubara’s administration in executing the budget and managing the state’s finances. By highlighting what she deemed as “gross violations” of the Nigerian Constitution, Justice Abdulmalik underscores the judiciary’s responsibility to curb executive actions that could undermine constitutional principles.
The implications of this ruling are significant. For Rivers State, the immediate consequence is a potential freeze on the funding necessary for its daily functions and public service delivery. For the Fubara administration, it is a stark reminder of the constitutional boundaries governing executive actions, particularly in financial matters. As the judiciary takes a bold stance on constitutional adherence, this case may also serve as a cautionary example to other state governments and officials regarding the importance of legal compliance in fiscal operations.
This decision, pending further developments, leaves the Rivers State Government in a precarious position. As Governor Fubara’s administration navigates these judicial restrictions, the focus will shift to how the state plans to address the court’s concerns and ensure its budgetary process aligns with constitutional mandates.
Reference
JUST IN: Court stops CBN from releasing allocation to Rivers