Federal High Court halts CBN funds to Rivers State over constitutional issues

In a significant legal ruling, the Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to cease further financial allocations to the Rivers State government.

The court’s decision stems from concerns regarding the constitutionality of the financial operations led by Governor Siminalayi Fubara since January of this year.

Justice Joyce Abdulmalik, who presided over the case, stated that the monthly disbursements facilitated by the CBN were not only improper but represented a “constitutional somersault.”

This phrase reflects the court’s view that Governor Fubara’s actions contravene established legal protocols and constitutional mandates, which must be adhered to in the governance of state finances.

One of the pivotal points of contention was Fubara’s presentation of the 2024 budget to a four-member Rivers House of Assembly.

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 Justice Abdulmalik characterized this move as an affront to the provisions of the Constitution, indicating that such actions undermine the legislative process and democratic principles.

The judge emphasized that by advancing an unlawful budget, Fubara had grossly violated the 1999 Constitution, which he vowed to uphold upon taking office.

In her ruling, Justice Abdulmalik further restrained several key financial entities, including the CBN, the Accountant General of the Federation, Zenith Bank, and Access Bank, from allowing Governor Fubara to access funds from the Consolidated Revenue and Federation Accounts.

This measure aims to prevent any potential misuse of public funds during this period of legal scrutiny.

Experts in constitutional law have weighed in on the ruling, highlighting its implications for the governance of states in Nigeria. Professor Adeola Akintola, a legal scholar, remarked, “This ruling underscores the judiciary’s role in maintaining constitutional integrity. It sends a clear message that adherence to legal frameworks is non-negotiable for any state administration.”

The ruling is likely to have significant ramifications for Rivers State’s financial operations and governance.

As the situation develops, stakeholders will be closely monitoring the response from both the Rivers State government and the CBN, as well as the potential for appeals or further legal action.