The legal struggle over local government area (LGA) allocations in Rivers State has intensified, with significant impacts on governance and financial stability.
This dispute was ignited by a lawsuit filed by a faction in the Rivers State House of Assembly, led by former Governor Nyesom Wike, against the current administration of Governor Siminalayi Fubara. The All Progressives Congress (APC) is also embroiled in this case, raising concerns over potential political motivations and the long-term effects on local governance.
The Rivers State House of Assembly, under the leadership of Martin Amaewhule, initiated this legal action, requesting an injunction from the Federal High Court in Abuja. The suit demands that the Central Bank of Nigeria (CBN), commercial banks, and the Accountant-General of the Federation suspend the release of funds allocated to Rivers State LGAs. The assembly faction argues that disbursement should halt until legal questions over the legitimacy of the assembly’s appropriations are resolved.
This legal battle unfolds amidst a power struggle in the Rivers State House of Assembly. In late 2023, an attempt to impeach Governor Fubara by members aligned with Wike led to heightened tensions, resulting in the assembly faction’s seats being declared vacant after they defected from the Peoples Democratic Party (PDP) to the APC. The court case has since become a focal point in the ongoing political conflict, with each side seeking influence over state governance.
On October 23, 2024, Justice Joyce Abdulmalik ruled against the Rivers State government’s request to stop the proceedings. The court deemed the government’s request as “frivolous, vexatious, unwarranted, and mischievous,” allowing the case to proceed. This ruling has serious implications for Rivers State’s finances, with federal allocations comprising a substantial part of the budget.
The suspension of these funds poses severe challenges to the state, particularly in delivering essential services and maintaining local governance. Federal allocations account for approximately 60% of the state’s revenue, supporting projects and salary payments crucial to daily operations. Without this revenue, the Fubara administration may be forced to consider increased borrowing to bridge the financial gap, straining an already tight budget.
- Budget Breakdown:
- Total Budget: N800 billion
- Capital Expenditure: N410 billion (55%)
- Recurrent Expenditure: N360 billion (45%)
- Federal Allocation Share: Approximately 36% of the total budget
2. Debt Profile:
- Current Debt: N305.37 billion
- Debt Servicing Budget: N76.9 billion
- Expected Borrowing for Deficits: N264.9 billion
Political figures have voiced concerns regarding the motivations behind this legal maneuvering. APC members and opposition leaders alike have questioned whether the suit is rooted in genuine governance concerns or if it’s an attempt to destabilize Governor Fubara’s administration. The suspension of LGA funding raises serious questions about constitutional protections for local governance and the role of state politics in financial management.
Honorable Ikenga Imo Ugochinyere from Imo State condemned these legal actions as an attempt to disrupt local governance in Rivers State:
“The APC and Pro-Wike group are filing a suit at the Federal High Court…knowing fully well that no court in Nigeria has declared the election of the LGA chairmen invalid.”
Ugochinyere emphasized that efforts to suspend LGA funding are unconstitutional, warning that political conflicts should not endanger essential services and the financial stability of local governments.
Federal allocations play a critical role in maintaining public services and upholding state-funded initiatives. Withholding these funds has immediate consequences, including potential delays in paying civil servants, suspensions of public projects, and disruptions in social services.
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