The Abuja division of the Court of Appeal on Friday overturned a Federal High Court judgment that restrained the Central Bank of Nigeria (CBN) and the Accountant General of the Federation from releasing funds to the Rivers State Government.
The appellate court’s decision follows an earlier ruling on October 30 by Justice Joyce Abdulmalik of the Federal High Court, Abuja, which halted further disbursement of monthly financial allocations to Rivers State. Justice Abdulmalik’s judgment was based on the presentation of the 2024 budget by Governor Siminalayi Fubara before what she deemed an illegitimate Rivers State House of Assembly. She described the act as a violation of constitutional provisions.
In her ruling, Justice Abdulmalik stated, “The Appropriation Bill for January to December 2024, being operated by the 5th defendant (Fubara), having not been charged by the lawful House of Assembly, is illegal, unlawful, and a subversion of the 1999 Constitution.” She emphasized the necessity for appropriation bills to be presented to duly constituted Houses of Assembly for legitimacy in disbursements and withdrawals.
However, in its judgment, a three-member panel of the Court of Appeal, led by Justice Hamman Barka, held that the Federal High Court lacked jurisdiction to entertain the suit, as the matter pertained to a state appropriation issue. The appellate court clarified that merely listing federal agencies as parties in the case does not grant the Federal High Court unrestricted jurisdiction over the matter.
Allowing the appeal of the Rivers State Government, the Court of Appeal set aside all orders issued by Justice Abdulmalik. The court declared it unconstitutional for the Federal High Court to restrict the Rivers State Government from accessing funds due to it from the consolidated revenue fund.
The appellate court concluded that the Federal High Court overstepped its jurisdiction in entertaining the case and issuing such restrictive orders. This ruling paves the way for the resumption of monthly financial allocations to Rivers State.