Seized Allocations: Outrage as Rivers Teeters on Brink of Financial Crisis

Rivers State has been embroiled in a heated battle for supremacy, pitting the state governor Siminalayi Fubara against his former political godfather, Nyesom Wike, the Minister of the Federal Capital Territory. The latest development in this unending battle is a Federal High Court ruling in Abuja, which has seized the state’s allocations, plunging the region into uncertainty and sparking widespread outrage. Korede Abdullah, Africa Health Report Southwest correspondent examines the protracted crisis and its Implications on governance and quality of services to the people of the state.

The Ruling as a Rude Shock

The people of Rivers State were jolted on October 30 as the Federal High Court in Abuja dealt a significant blow to the State Government, restraining the Central Bank of Nigeria (CBN) from releasing monthly allocations to the state.

Federal High Court in Abuja issued the order, citing budget violations as the reason.

The development was the latest twist in the ongoing battle for supremacy between Rivers State Governor, Siminalayi Fubara, and Minister of the Federal Capital Territory, Nyesom Wike.

Constitutional Somersault

Justice Joyce Abdulmalik delivered the judgement, citing “constitutional somersault” and “aberration” in how Governor Fubara has been handling the state’s budget since January.

Justice Abdulmalik’s decision follows Rivers State Governor Fubara’s recent presentation of the 2024 budget to the state’s legislature.

The judge highlighted that only four members were present in the Rivers State House of Assembly when Fubara presented the budget, which she called a “flagrant affront” to constitutional requirements.

The order also affects the Accountant-General of the Federation (AGF) and the state government’s bankers, Zenith Bank and Access Bank.

Escalation of Rivalry Between Political Gladiators

The rivalry between Fubara and Wike has been escalating, with Wike vowing to fight Fubara “to a standstill” over alleged disagreements on state revenue.

The conflict has led to attempts to impeach Fubara and a struggle for control of the state’s 23 local councils.

The court’s decision has significant implications for the people of Rivers State, potentially affecting the delivery of public services and the state’s economic development.

Accountant General Confirms Seizure Of October FAAC Allocation

In a move that has heightened tensions in the oil-rich state, the federal government has seized the October FAAC allocation to Rivers State.

This decision was confirmed by the Office of the Accountant General of the Federation on Friday, citing compliance with a federal high court order.

The court ruling, made in October, was in response to a matter brought before it by the Martin Amaewhule-led Rivers State House of Assembly.

The Heart of the Dispute

At the heart of the dispute is the recent LGA election, which has pitted Governor Simi Fubara against Nyesom Wike, a former governor and current Minister of the Federal Capital Territory.

Wike’s faction has challenged the validity of the election, securing a court order to halt the monthly FAAC allocation to the state.

However, in a surprising twist, a court of Appeal in Abuja upheld the LGA elections conducted by the state government on Thursday.

Bawa Mokwa, spokesperson for the Office of the Accountant General of the Federation, explained that the decision to withhold the October allocation was made in line with the court order, as there is no contrary ruling from any other court in the country.

Mokwa said, “What I got is that the October 2024 FAAC has not been distributed yet. However, the Federal Government will obey the court order on the matter of Rivers State allocation.

“We are going to follow due diligence as long as there is no contrary order. In case there is a contrary, the status will remain.”

He added, “The process of disbursement of the October 2024 monthly allocation is going.”

Judicial Coup Against the People

Apart from sparking outrage, the court ruling has been compared to the 2004 seizure of federal allocations to local governments in Lagos State under former President Olusegun Obasanjo.

It ruling has been described as a “judicial coup against the people of Rivers State,” by some political analysts, with many drawing parallels to the 2004 incident, in which then-Lagos State Governor Bola Tinubu, now Nigeria’s president, challenged the federal government’s decision in the Supreme Court.

The move has raised concerns about the potential consequences for the people of Rivers State, including the impact on state workers’ salaries and ongoing projects.

Judicial Precedent Must Prevail

Analysts have weighed in on the recent seizure of Rivers State’s monthly allocations, citing a landmark Supreme Court judgment between the federal and Lagos state governments.

The court had ruled that the federal government has no power to seize monthly allocations to states.

In the judgment, then Chief Justice of Nigeria, Justice Muhammadu Uwais, ruled in favor of Lagos State, declaring the federal government’s withholding of local government allocations as unconstitutional.

Other justices who sat on the matter included Idris Kutigi, Anthony Iguh, Niki Tobi, Dennis Edozie, and Sunday Akintan.

While the Lagos State case was centered on the creation of additional council areas, the current dispute involves the legality of the presentation of the 2024 budget being implemented by the Rivers State government.

The Rivers State government has been at odds with the federal government over the budget, leading to the seizure of its allocations.

The Lagos-FG Landmark Judgment

In the Supreme Court judgement delivered December 10, 2004, their Lordships decided, “The President has no power vested in him (by executive or administrative action) to suspend or withhold for any period whatsoever the statutory allocation due and payable to Lagos State Government pursuant to the provisions of section 162 (5) of the 1999 Constitution… “

The apex Court also made a consequential order “Compelling the defendant to pay immediately all outstanding statutory allocation due and payable to the Lagos State Government pursuant to the provisions of section 165(5) of the Constitution of the Federal Republic of Nigeria, 1999…”

 

Seizure of Allocations Sparks Outrage

The court ruling stopping the Rivers State government from accessing its monthly allocations, has continued to spark widespread criticism from lawyers, political analysts and experts.

Lawyers have condemned the move, calling it a judicial abuse with far-reaching implications for the people of Rivers State.

“This is a clear case of judicial overreach,” said Kayode Olusesan, a constitutional lawyer. “The court has no right to interfere with the financial affairs of a state government in this manner.”

Another lawyer, Abiodun Ajibade, echoed Olusesan’s sentiments, adding that the ruling would have severe consequences for the people of Rivers State.

“This decision will cripple the state’s ability to provide essential services to its citizens, It’s a recipe for disaster.”, Ajibade said.

Implementation Taking its Heavy Toll

The implementation of the seizure of Rivers State allocations has begun to take its toll on the people of the state.

According to reports, the federal government’s decision to withhold the state’s monthly allocations through the Accountant-General, has resulted in a significant reduction in the state’s revenue, affecting its ability to provide essential services to its citizens.

This move has been described as a “judicial coup” against the people of Rivers State, with many expressing concerns about the potential consequences of this decision.

An economist and UNICEF consultant, Dr Ahmed Tosin Yusuf who spoke with our correspondent criticized the court ruling and its hasty implementation by the federal government, adding that it’s going to have implications on the state.

“The seizure of the state’s allocations is likely to have far-reaching implications for the people of Rivers State, including the potential delay or cancellation of ongoing projects, as well as the impact on the state’s ability to pay salaries and provide essential services”, Yusuf said.

The economist however, allayed the fear that the state will be grounded to a halt.

“It’s worth noting that Rivers State has a strong internally generated revenue (IGR) base, which could help mitigate the effects of the seizure.

“Despite that, a lot of things will be negatively affected in terms of rendering essential services to the people.

“What is playing out in the state is like a case of two elephants fighting, it is ordinary people of Rivers State that will bear the brunt, just like the grass under the feet of the two elephants”. Dr Yusuf explained.

Social Implications May Worsen

Analysts have also expressed their concern that the seizure of Rivers State’s monthly allocations may begin to take a devastating toll on the state’s social sector.

The education sector is one of the hardest hit, with reports indicating that the state government may struggle to pay teachers’ salaries and fund ongoing school projects.

This could lead to a decline in the quality of education and potentially force some schools to shut down.

Africa Health Report (AHR) gathered that the healthcare sector is also feeling the pinch, with concerns that the state government may not be able to fund essential healthcare services, including the provision of medical supplies and equipment.

Additionally, poverty reduction initiatives are also at risk, as the state government may not be able to fund programs aimed at supporting vulnerable populations.

The situation is dire, and many are calling on the federal government to reconsider its decision and release the seized allocations to avoid further hardship for the people of Rivers State.

Democracy and Rule of Law in Danger

The seizure has also sparked concerns about the potential impact on democracy, governance, and the rule of law in the state.

 

Analysts warn that this move could undermine the state’s ability to function effectively, leading to a breakdown in governance and potentially destabilizing the democratic process.

Mr Saka Ayinde an America-based Nigerian, who spoke with this newspaper on the phone, said he has been keenly following the Rivers State political crisis, lamenting that the situation was particularly worrisome.

“Given the history of political tensions in Rivers State, where internal party conflicts and power struggles have often threatened to boil over into violence, I am afraid of how the whole issue will pan out.”, Ayinde said.

He warned that the implications of the development may extend beyond Rivers State, with potential consequences for the country’s democratic system as a whole.

“The rule of law is a fundamental principle of democracy, and any attempt to undermine it could have far-reaching and damaging consequences.

“The situation demands urgent attention from all stakeholders to prevent a further erosion of democratic norms and principles.”, He cautioned.

The seizure of Rivers State allocations has also raised concerns about the independence of the judiciary and the potential for political interference. Lawyers have called for a review of the ruling, citing the need to protect the rights of the people of Rivers State.

Rivers Governor Seeks Reversal of Court Ruling

Governor Fubara has petitioned the Court of Appeal in Abuja to overturn the controversial Federal High Court judgment that halted the release of monthly allocations to the state.

The governor’s legal team, led by Senior Advocate of Nigeria (SAN) Yusuf Ali, argued that the October 30 order issued by Justice Joyce Abdulmalik was delivered in bad faith and should be set aside.

This development is the latest in a deepening power struggle between Governor Fubara and loyalists of his predecessor, Nyesom Wike.

The outcome of this case is expected to have significant implications for governance in Rivers State and its political landscape.

Analysts warn that if the ruling is not overturned, it could lead to a crisis in the state’s ability to provide essential services to its citizens.

The situation is being closely watched as it remains fluid, with many calling for a swift resolution to the dispute.

 

 

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