The FG refutes claims of suspending Rivers’ FAAC allocation during the Wike-Fubara conflict
The Federal Government has refuted allegations that it has stopped releasing funds to Rivers State.
On Friday, the Office of the Accountant General of the Federation (OAGF) revealed that the October revenue allocation to Rivers State had been withheld, citing a Federal High Court directive. OAGF spokesperson Bawa Mokwa clarified that the government is adhering to the court’s order and will only resume disbursement if directed otherwise.
“The October 2024 FAAC allocation hasn’t been distributed yet, but the federal government is committed to following the court ruling regarding Rivers State,” Mokwa stated. He emphasized that the allocation process is ongoing but will respect the court’s decision unless an alternative directive is issued.
This development occurs against the backdrop of a prolonged political conflict between Rivers State Governor Siminalayi Fubara and the Federal Capital Territory Minister, Nyesom Wike.
In a later statement to the Saturday Tribune, Mokwa reiterated that all states, including Rivers, would receive their October allocation because of an active appeal and stay of execution order. Meanwhile, the Court of Appeal in Abuja has reserved judgment on multiple appeals related to the Federal High Court’s ruling that barred the Central Bank of Nigeria (CBN) from releasing Rivers State’s federal allocations.
Justice Hamma Barka, presiding over the appeals, announced that a judgment date would be set after all parties submit their filings. These appeals challenge the Federal High Court’s decisions from October 2024 that invalidated the disbursement of funds to Rivers State. One of the appeals, led by Yusuf Ali (SAN) on behalf of Governor Fubara, successfully consolidated five cases.
Previously, on October 30, Justice Joyce Abdulmalik of the Federal High Court, Abuja, ruled that the CBN must halt financial allocations to Rivers State, declaring the governor’s actions unconstitutional. She cited that Governor Fubara’s approval of the 2024 budget, based on a four-member House of Assembly, violated constitutional requirements.
The court declared the 2024 budget’s implementation illegal and barred the CBN, the Accountant General, Zenith Bank, and Access Bank from granting the governor access to funds. Justice Abdulmalik also ruled that both the Federal High Court and Court of Appeal had nullified the four-member House of Assembly’s actions, making the budget invalid.
Additionally, the court restrained the governor and state officials from authorizing withdrawals from Rivers State bank accounts at Zenith Bank and Access Bank until the budget is lawfully passed by the appropriate House of Assembly.
The case, initiated by the Rivers State House of Assembly and Speaker Martin Chike Amaewhule, names several entities as defendants, including the CBN, Zenith Bank, Access Bank, and Rivers State officials. The legal battle underscores the ongoing constitutional crisis in the state’s governance.
