Rivers State Budget Row: Court Stops CBN Allocation

Court Restrains CBN from Releasing Monthly Allocation to Rivers Govt

The ruling effectively restrains the CBN, Accountant General of the...

Federal High Court orders CBN to halt Rivers State allocations due to Governor Fubara's constitutional breaches in budget presentation and implementation.

Justice Joyce Abdulmalik of the Federal High Court in Abuja has made a landmark ruling, stopping the Central Bank of Nigeria (CBN) from releasing monthly allocations to the Rivers State government. This decision was made due to Governor Siminalayi Fubara's handling of these allocations since January, which was deemed a serious breach of the constitution.

Specifically, the court took issue with Fubara's presentation of the 2024 budget to a four-member Rivers House of Assembly, labeling it a clear violation of constitutional norms. By implementing an unlawful budget, Fubara demonstrated significant disregard for the 1999 Constitution, which he swore to uphold as governor.

The ruling effectively restrains the CBN, Accountant General of the Federation, Zenith Bank, and Access Bank from allowing Fubara to access funds from the Consolidated Revenue and Federation Account. This move highlights the need for governors to adhere to constitutional guidelines in managing public funds and conducting state business.

Fubara's administration has faced criticism for its handling of local government funds. Previously, the Supreme Court ruled that states with caretaker committee chairmen, like Rivers, would not receive Federation Account Allocation Committee (FAAC) allocations. This emphasizes the importance of democratic elections in local government and the proper distribution of funds.

Governor Fubara's financial transactions just hit a roadblock - a court order is now blocking the CBN, Accountant General of the Federation, Zenith Bank, and Access Bank from releasing funds from the Consolidated Revenue and Federation Accounts to his administration.