Court halts FAAC allocation to Rivers State amidst power struggle

The Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to cease the disbursement of monthly fiscal allocations to the Rivers State Government.

Justice Joyce Abdulmalik held that Governor Siminalayi Fubara’s handling of state funds and his budgetary actions violated constitutional guidelines, a ruling that intensifies the political tension between Mr Fubara and his predecessor, Nyesom Wike.

According to Channels TV, the ruling says that Mr Fubara’s receipt and management of allocations since January have breached constitutional provisions, particularly following his contentious presentation of the 2024 state budget.

Justice Abdulmalik noted that Mr Fubara’s submission of the budget to only four members of the Rivers State House of Assembly contravened the 1999 Constitution and dismissed it as an “aberration” that cannot continue.

The court also ordered the CBN, alongside the Accountant General of the Federation, and major banks—Zenith Bank and Access Bank—to restrict Governor Fubara’s access to funds from the Consolidated Revenue and Federation Account.

The ruling effectively cuts off financial support from the federal allocation to Rivers State until the court orders otherwise.

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The decision follows an October ruling by the Court of Appeal in Abuja, which invalidated the passage of the 2024 budget, aligning with an earlier Federal High Court judgment.

The previous ruling acknowledged a faction loyal to former governor Wike, led by Martin Amaewhule, as the legitimate Rivers State House of Assembly. As Minister of the Federal Capital Territory and Fubara’s political rival, Wike remains an influential figure in Rivers State, and the court’s recent judgment could strengthen his grip on local governance.

The budget crisis erupted after Governor Fubara presented an N800 billion budget before a small group of loyal lawmakers—a move interpreted as a bid to solidify his authority. This budget session followed the defection of 27 legislators from the Peoples Democratic Party (PDP) to the All Progressives Congress (APC), aligning with Wike’s influence.

Speaking after the recent appellate court ruling, Martin Amaewhule voiced approval, describing the judgment as a “scolding” for Fubara. The ruling underscores a fierce rivalry, heightened by recent clashes between factions loyal to Fubara and Wike over local government elections, where Fubara’s allies claimed victories.