FG Clears Air: Rivers State’s FAAC Allocation Is Still On, Despite Court Ruling

FG Clears Air: Rivers State’s FAAC Allocation Is Still On, Despite Court Ruling

The Federal Government has denied claims that it has halted the disbursement of funds to Rivers State. This clarification follows an earlier announcement on Friday by the Office of the Accountant General of the Federation (OAGF), which suggested that the disbursement…READ MORE…

of October revenue to Rivers State had been stopped in accordance with a Federal High Court ruling.

Bawa Mokwa, the spokesperson for OAGF, addressed the media on Friday, stating that the government would adhere to the court’s order regarding the suspension of Rivers State’s allocation but would continue with due diligence. Mokwa assured that the disbursement of the October 2024 allocation to other states is proceeding as planned, adding that Rivers State would benefit from a subsisting appeal and stay of execution order.

Speaking to Saturday Tribune, Mokwa confirmed that “disbursement of October allocation to states and local governments by FAAC is ongoing,” and Rivers State will receive its share, given the legal developments currently underway.

This development comes amid a tense political battle between Governor Siminalayi Fubara of Rivers State and the Federal Capital Territory (FCT) Minister, Nyesom Wike. The ongoing legal tussle is centered around a Federal High Court ruling on the management of the state’s finances.

In related news, the Court of Appeal in Abuja has reserved judgments on five separate appeals arising from the political conflict within the Rivers State government. These appeals challenge a ruling by the Federal High Court, which ordered the Central Bank of Nigeria (CBN) to stop releasing federal allocations to Rivers State.

Yusuf Ali, SAN, representing Governor Fubara, had requested the consolidation of these appeals, a request granted by the Court of Appeal. The appeals stem from judgments issued by Justice Joyce Abdulmalik of the Federal High Court, who ruled on 30th October 2024 that the CBN must halt the disbursement of federal funds to Rivers State, citing constitutional violations by Governor Fubara in managing the state’s budget.

Justice Abdulmalik had previously ruled that the budget presented by Fubara, supported by a four-member House of Assembly, was unconstitutional. The judge emphasized that any financial disbursements must follow constitutional processes, including approval by a legitimate House of Assembly.

The legal battle continues to unfold, with the Court of Appeal expected to issue further rulings that could have significant implications for the governance and financial management of Rivers State.

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