The Court of Appeal, Abuja Division, has overturned a Federal High Court judgment that barred the Central Bank of Nigeria (CBN) and the Accountant General of the Federation from releasing monthly financial allocations to the Rivers State Government. The appellate court delivered its verdict on Friday, citing lack of jurisdiction as the reason for the reversal.
The earlier ruling, delivered by Justice Joyce Abdulmalik on October 30, had accused Governor Siminalayi Fubara of presenting the 2024 budget to an illegitimate Rivers State House of Assembly, branding the act as unconstitutional.
Justice Abdulmalik declared the appropriation bill for 2024 invalid and halted financial disbursements to the state, describing the process as a "subversion of the 1999 Constitution."
However, a three-member panel of the Court of Appeal, led by Justice Hamman Barka, ruled that the Federal High Court had overstepped its bounds in entertaining the case.
The appellate court stated that matters relating to the appropriation of state funds fall outside the jurisdiction of the Federal High Court, even with federal agencies listed as parties.
"The mere listing of federal agencies does not confer unrestricted jurisdiction on the Federal High Court," Justice Barka emphasized. He added that the Federal High Court's orders were unconstitutional and an overreach of judicial authority.
The appellate court granted the Rivers State Government’s appeal, setting aside all restrictive orders issued by the lower court. It ruled that Rivers State is entitled to its financial allocations and described the previous judgment as lacking legal merit.
This judgment is a significant victory for Governor Fubara and the Rivers State Government, ensuring the continuation of funds from the state’s consolidated revenue fund to support governance and development.