Port Harcourt, Nigeria – The Court of Appeal in Abuja has set aside a previous ruling by the Federal High Court that halted the disbursement of monthly statutory allocations to Rivers State. The decision, delivered on Monday, was made by a three-member panel of justices in a two-to-one split.
The appellate court, led by Justice Hamma Barka, held that the Federal High Court lacked jurisdiction to entertain the case, which revolved around Rivers State’s budget appropriation. The court ruled that the inclusion of federal agencies as parties did not grant the Federal High Court in Abuja the authority to preside over the matter. Justice Barka emphasized that the subject of the dispute was outside the high court’s territorial jurisdiction.
The panel’s decision was supported by six separate appeals, including one by Rivers State Governor Siminalayi Fubara, who challenged the restraining order issued by Justice Joyce Abdulmalik of the Federal High Court on October 30. However, Justice Adebukola Banjoko dissented, maintaining that the high court’s order should stand.
Governor Fubara, supported by the Rivers State Government, Accountant-General of Rivers State, and Zenith Bank Plc, argued that the high court’s judgement was issued in bad faith. Represented by Yusuf Ali, SAN, the governor urged the appellate court to void the high court’s orders.
The appeals were consolidated, with case numbers including CA/ABJ/CV/1277/24, CA/ABJ/CV/1196/24, and CA/ABJ/CV/1303/24.
Background of the Case
The controversy began when the Federal High Court restrained the Central Bank of Nigeria (CBN) from disbursing funds to Rivers State. The order followed a suit filed by a faction of the Rivers State House of Assembly, led by Hon. Martins Amaewhule, who accused Governor Fubara of failing to present the 2024 Appropriation Bill to the Assembly.
The plaintiffs, who defected from the Peoples Democratic Party (PDP) to the All Progressives Congress (APC), argued that the governor violated constitutional provisions by withdrawing funds without legislative approval. They also alleged the governor’s actions contravened Section 120 of the 1999 Constitution.
Governor Fubara countered the allegations, asserting that the plaintiffs no longer held legislative status after defecting to the APC. He claimed their seats were declared vacant, rendering them ineligible to initiate legal action. However, the Hon. Amaewhule faction maintained that a previous ruling by Justice James Omotosho recognized Amaewhule as the legitimate Speaker of the Rivers State House of Assembly.
The high court had earlier invalidated the 2024 budget presented by a four-member faction loyal to Hon. Victor Oko-Jumbo, citing a breach of constitutional requirements for legislative quorum.
Appellate Court’s Decision
The appellate court consolidated the appeals and ruled in favor of Governor Fubara and the Rivers State Government, allowing the continuation of monthly allocations to the state.
This ruling is a significant win for the Fubara administration, which had accused the plaintiffs of abusing judicial processes and engaging in forum shopping. The judgment also reaffirms the limitations of the Federal High Court’s jurisdiction in cases involving state budgetary disputes.
Governor Fubara and his legal team expressed relief at the decision, emphasizing its importance for restoring fiscal stability in Rivers State.
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