The Court of Appeal in Abuja on Monday overturned a Federal High Court ruling that had barred the Central Bank of Nigeria from disbursing monthly statutory allocations to Rivers State.
In a split decision of two to one, the three-member appellate panel, led by Justice Hamma Barka, held that the Federal High Court in Abuja lacked the jurisdiction to adjudicate the matter.
The court stated that the inclusion of federal agencies in the suit was insufficient to vest jurisdiction in the Federal High Court. The panel determined that since the legal dispute involved state budget appropriation, it should have been filed in an appropriate venue.
The appellate court allowed six appeals, including one by Rivers State Governor Siminalayi Fubara, thereby setting aside the Federal High Court’s judgment. However, Justice Adebukola Banjoko dissented, upholding the lower court’s order.
The appeals, marked CA/ABJ/CV/1277/24, CA/ABJ/CV/1196/24, CA/ABJ/CV/1287/24, CA/ABJ/CV/1293/24, and CA/ABJ/CV/1360/2024, were filed by Governor Fubara, the Rivers State Government, the state’s Accountant-General, and Zenith Bank Plc.
The case originated from an October 30 Federal High Court judgment, which restrained the CBN from releasing Rivers State’s federal allocations. The Hon. Martins Amaewhule-led faction of the Rivers State House of Assembly, loyal to former Governor Nyesom Wike, filed the suit, accusing Governor Fubara of unauthorized withdrawals from the state’s consolidated revenue fund.
The plaintiffs alleged that Governor Fubara breached Section 120 of the 1999 Constitution by failing to represent the state’s 2024 Appropriation Bill to the Assembly. They sought an order to enforce fiscal accountability, claiming that their objective was to ensure transparency in the utilization of funds allocated to Rivers State.
The defendants, including the CBN, Zenith Bank, Access Bank, and the Accountant-General of the Federation, contested the suit’s competence, arguing that the Federal High Court in Abuja lacked territorial jurisdiction. They maintained that the case should have been heard at the Port Harcourt Division of the Federal High Court.
Governor Fubara also argued that the plaintiffs had no legal standing (locus standi) to file the suit, as their seats were declared vacant after they defected from the Peoples Democratic Party to the All Progressives Congress.
Justice Joyce Abdulmalik of the Federal High Court ruled in favor of the plaintiffs, citing earlier judgments by Justice James Omotosho and the appellate court that recognized the Amaewhule-led group as the legitimate Assembly faction. She declared that Governor Fubara’s actions violated Section 91 of the 1999 Constitution, which outlines the composition and legislative procedures of state assemblies.
The high court’s judgment also invalidated the 2024 Appropriation Bill presented by Governor Fubara to a rival faction led by Hon. Victor Oko-Jumbo. An application by the Oko-Jumbo faction to join the suit as interested parties was rejected.
The appellate court consolidated all related appeals and nullified the Federal High Court’s judgment. Governor Fubara’s legal team, led by Yusuf Ali (SAN), argued that the plaintiffs abused the judicial process through forum shopping and multiplicity of suits. The appeal court agreed, ruling that the Federal High Court had erred in adjudicating a matter outside its jurisdiction.
This development is expected to restore the flow of federal allocations to Rivers State, pending further legal challenges or compliance with the appellate court’s decision.
