Supreme Court stops FAAC allocation to Rivers, orders Martin Amaewhule-led Assembly to resume sitting  

The Supreme Court of Nigeria has restrained the Central Bank of Nigeria (CBN) from further disbursing monthly financial allocations to the Rivers State government until an Appropriation law is made by the Martin Amaewhule-led Rivers State House of Assembly constituted.

Justice Emmanuel Agim delivered the lead judgement on Friday, resolving the political crisis in the state in respect of the state funds and its legislative process.

Nairametrics previously reported that the Federal High Court in Abuja had 2024 issued an order barring the Central Bank of Nigeria (CBN) from further disbursing monthly financial allocations to the Rivers State government.

The verdict extended to the Accountant-General of the Federation (AGF), as well as Zenith Bank and Access Bank, where the state holds accounts.

Allocation Case 

Recall that Justice Joyce Abdulmalik had ruled that Governor Siminalayi Fubara’s receipt and use of monthly allocations since January 2024 constitute a violation of the constitution that cannot be permitted to continue.

• The judge described Fubara’s presentation of the 2024 budget to a four-member Rivers House of Assembly as a direct affront to constitutional requirements.
• She further stated that the governor’s implementation of the budget reflects a gross breach of the 1999 Constitution, which he is bound to uphold.

Justice Abdulmalik consequently ordered the CBN, AGF, Zenith Bank, and Access Bank to block any further access by Fubara to funds from the Consolidated Revenue Fund and the Federation Account.

Following her verdict, parties appealed up to the Apex Court.

What the Supreme Court said  

Passing a final verdict on the dispute, Emmanuel Agim, in a unanimous judgment, held that the FHC court rightly held that Fubara violated the law. He said political disagreement cannot override the rule of law.

He said what the governor has done is to destroy the principles of legislation and separation of powers over “the fear of being impeached.” 

“In the light of the foregoing, I hold that the cross appeal lacks merit and is hereby dismissed.” 

“For avoidance of doubt, the CBN and the Accountant General of the federation should forthwith stop paying to Rivers State any money belonging to Rivers until an Appropriation law is made by Rivers State House of Assembly constituted and prescribed. 

“Right Honorable Martin Amaewhule and the other 26 members of the Rivers State House of Assembly should forthwith resume unhindered sitting as lawmakers. 

“The Rivers State should resume sitting with all elected members forthwith,” the judge said. 

What you should know  

The dispute surrounding the Rivers State government’s finances stems from a political crisis that erupted earlier in 2024, following Governor Siminalayi Fubara’s fallout with members of the state legislature.

• Tensions reached a peak when most of the Rivers House of Assembly members were reportedly impeached or suspended, leaving only four loyalists in the assembly.
• Despite the irregularity, Governor Fubara pressed forward, presenting and approving the state’s 2024 budget with the drastically reduced assembly, a move widely criticized as unconstitutional.
• In January, the Federal High Court in Abuja voided the N800 billion budget approved by a faction of the Rivers State House of Assembly led by Edison Ehie and signed into law by Governor Siminalayi Fubara.
• The court also ruled in favour of a suit filed by the Assembly and its Speaker, Martin Amaewhule, which sought an injunction to prevent Governor Fubara from obstructing the Assembly’s functions under Amaewhule’s leadership, among other reliefs.

Presiding Judge James Omotosho declared that all actions taken by the four lawmakers aligned with Fubara were illegal and without effect.

Earlier this month, the Court of Appeal in Abuja rejected Governor Siminalayi Fubara’s appeal challenging the Federal High Court’s decision that nullified the N800 billion budget passed by the Edison Ehie-led faction of the Rivers State House of Assembly and signed into law by the governor.

The three-member appellate panel delivered the ruling on Thursday, October 10, 2024, upholding the lower court’s judgment.