The Court of Appeal in Abuja yesterday overturned a Federal High Court judgement that had halted the release of monthly federal allocations from the consolidated revenue funds to the Rivers State Government.

In a ruling by a three-member panel of judges, the appellate court determined that the lower court lacked the jurisdiction to entertain the suit that sought to withhold the state’s funds on the grounds that the 2024 budget had not been presented to the Rivers State House of Assembly.

Justice Joyce Abdulmalik of the Federal High Court had, in a judgement delivered on 30 October, restrained the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation from disbursing funds to the Rivers State Government, citing alleged constitutional breaches. Justice Abdulmalik stated that the budget currently in use by the state was not lawfully passed by a legitimate arm of the Rivers State House of Assembly, thereby necessitating the injunction to prevent further violations.

Dissatisfied with this ruling, the Rivers State Government and Governor Siminalayi Fubara appealed the judgement, seeking its reversal. The appellants also sought a stay of execution, arguing that the ruling would have a detrimental impact on the state’s economy and its citizens.

The Court of Appeal, led by Justice Hamman Barka, agreed with the appellants, holding that the Federal High Court lacked the jurisdiction to adjudicate on the matter. The appellate court emphasised that the subject of state budgetary appropriations falls outside the remit of a Federal High Court, noting that merely listing federal agencies as defendants does not confer such jurisdiction.

Consequently, the appellate court overturned the orders issued by Justice Abdulmalik, declaring them unconstitutional, null, and void. It concluded that the lower court had overstepped its authority.

The dispute arose from divisions within the Rivers State House of Assembly, triggered by the defection of 27 lawmakers from the People’s Democratic Party (PDP). This split resulted in two factions: one led by Rt Hon Martin Amaewhule, loyal to the Federal Capital Territory Minister Nyesom Wike, and another led by four members loyal to Governor Fubara. The governor had presented the 2024 budget to the smaller faction, a move challenged by the Amaewhule-led group as unconstitutional.

Justice Abdulmalik had earlier ruled that the budget presentation was unlawful, citing the absence of a valid legislative quorum and a failure to comply with constitutional requirements.