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Federal High Court Freezes Rivers State Funds Over Disputed 2024 Budget Approval

A significant judicial decision by the Federal High Court in Abuja has effectively frozen financial allocations to Rivers State, Nigeria, following a dispute over the legality of its 2024 budget process.

Justice Joyce Abdulmalik ruled that the Central Bank of Nigeria (CBN) must suspend funds to the Rivers State Government until the state’s appropriation act is passed by a properly constituted House of Assembly.

The ruling responded to a legal suit filed by the recognized Speaker of the Rivers State House of Assembly, Martins Amaewhule. He challenged Governor Siminalayi Fubara’s decision to present the 2024 budget proposal to a faction of the Assembly led by Edison Ehie.

According to Justice Abdulmalik, Governor Fubara’s presentation to only four members, in a setting not compliant with Assembly requirements, renders the budget process invalid.

In December 2023, during a period of intense political tension, Governor Fubara presented a budget proposal totaling N800 billion to a group led by Ehie after the state government demolished the official Assembly Complex.

Despite a court injunction preventing Amaewhule from using the Assembly Complex, Ehie and his faction approved the budget in a makeshift setting, which Governor Fubara quickly signed into law, justifying it as a step toward economic inclusivity and equality.

The court’s order follows an earlier decision by Justice James Omotosho of the Federal High Court, who nullified the N800 billion budget, citing procedural violations.

The suspension of funds will remain until a legally compliant appropriation act is enacted by the Assembly under Amaewhule’s leadership, ensuring that Rivers State’s financial administration adheres to lawful legislative protocols.

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