Legal Ruling: CBN Prevented from Distributing Financial Allocation to Rivers State

Court Order: Halt on Financial Allocation Releases to Rivers State by CBN

A Federal High Court in Abuja has issued an order prohibiting the Central Bank of Nigeria (CBN) from disbursing further monthly allocations to the Rivers State Government.

This ruling stems from alleged constitutional violations by Governor Siminalayi Fubara.

Justice Joyce Abdulmalik stated that the governor’s presentation of the 2024 budget to a faction of the House of Assembly, consisting of only four members, was unconstitutional and described the state’s financial activities as a “constitutional aberration”​.

The court’s decision also restricts not only the CBN but also the Accountant General of the Federation and the banks managing Rivers State’s accounts from releasing funds to the state government.

Justice Abdulmalik emphasized the necessity for state budgets to be approved by a fully constituted legislative body, stating that any budget enacted without such approval is unlawful​.

This ruling follows a legal challenge from a faction of the Rivers House of Assembly that questioned the legitimacy of the smaller group aligned with Fubara.

The court’s judgment reflects ongoing political tensions within the state.