Abuja, NIGERIA – The Supreme Court of Nigeria has ordered the Central Bank of Nigeria (CBN) to halt further disbursement of monthly financial allocations to Rivers State until the state’s legislature enacts an Appropriation law. The ruling, delivered by Justice Emmanuel Agim, addresses a political crisis in the state regarding the administration of state funds and the legislative process.
The case dates back to 2024 when the Federal High Court in Abuja issued an order barring the CBN from disbursing allocations to Rivers State. The order also extended to the Accountant-General of the Federation (AGF), Zenith Bank, and Access Bank, where the state holds accounts.
In her earlier ruling, Justice Joyce Abdulmalik found that Governor Siminalayi Fubara’s receipt and utilization of monthly allocations since January 2024 violated the Nigerian Constitution. She criticized Fubara’s presentation of the state’s 2024 budget to a truncated four-member House of Assembly, describing it as “an affront to constitutional requirements.” The judge also emphasized that the governor’s actions represented a breach of the 1999 Constitution and directed the CBN, AGF, and the two banks to block any further disbursements to the state.
Following the judgment, the case was appealed and eventually reached the Supreme Court.
Justice Agim, delivering the lead judgment on Friday, upheld the lower court’s ruling, stating that the Federal High Court was correct in determining that Governor Fubara had violated the law. He said that political disagreements could not override the rule of law, particularly in the case of such a fundamental issue as the legislative process and the separation of powers.
“The governor’s actions have undermined the principles of legislation and separation of powers,” Agim said, referring to Fubara’s alleged fear of impeachment. “In light of the foregoing, I hold that the cross appeal lacks merit and is hereby dismissed.”
In its ruling, the Supreme Court further instructed the CBN and AGF to immediately cease payments to Rivers State until the state’s House of Assembly, led by Speaker Martin Amaewhule, enacts an Appropriation law. The court also ordered that Amaewhule and the 26 other elected members of the House of Assembly resume their functions “unhindered.”
“The Rivers State should resume sitting with all elected members forthwith,” the judge added.
The dispute over Rivers State’s finances arose from a political crisis that began earlier in 2024 following a fallout between Governor Fubara and several members of the state legislature. The tension escalated when a large number of lawmakers were either impeached or suspended, leaving only four members loyal to the governor.
Despite the limited number of legislators, Governor Fubara proceeded with presenting and approving the 2024 state budget, a move that was widely condemned as unconstitutional. This budget, totaling N800 billion, was approved by a faction of the House of Assembly led by Edison Ehie. The approval was subsequently signed into law by Fubara.
In January 2024, the Federal High Court in Abuja nullified the budget approved by the Ehie-led faction, ruling in favor of a lawsuit filed by the Assembly and its Speaker, Martin Amaewhule. The court found that Governor Fubara had obstructed the Assembly’s functions and issued an injunction preventing him from continuing his actions. Justice James Omotosho declared that “all actions taken by the four lawmakers aligned with Fubara were illegal and without effect.”
Governor Fubara challenged the Federal High Court’s ruling, but in October 2024, the Court of Appeal in Abuja upheld the lower court’s decision. The appellate court dismissed the governor’s appeal, reinforcing the judgment that nullified the budget passed by the faction led by Ehie.
With the Supreme Court’s final ruling on Friday, the protracted legal battle regarding the state’s financial allocations and the legitimacy of its budgetary process appears to have reached a resolution. The court’s directive for the Rivers State House of Assembly to resume full legislative activities marks a significant development in the ongoing political crisis.
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