The court of appeal in Abuja has set aside the judgment restraining the Central Bank of Nigeria (CBN) from disbursing financial allocations to the Rivers state government.
The three-member panel, on Friday, ruled that the subject matter of the state’s appropriation bill is not within the jurisdiction of the federal high court.
The Hamman Barka-led appellate court held that the lower court lacked the jurisdiction to entertain the matter and issue an order contained in the judgement.
The court upheld the argument of Chris Uche, a senior advocate of Nigeria (SAN) and counsel to the Rivers state government, that the federal court has no authority to entertain dispute about states’ revenue.
The appeal court said the listing of federal agencies in the suit does not confer the jurisdiction on the federal high court.
The judge said “the trial court lacked the subject matter jurisdiction to entertain the suit. The suit is struck out and all orders made therein are set aside for want of jurisdiction”.
In October, a federal high court in Abuja restrained the CBN from further disbursing financial allocations to the Rivers state government.
Joyce Abdulmalik, the presiding judge, held that monies from the federation account should not be released to the state pending the passage of a lawful appropriation act by a validly constituted house of assembly.
Abdulmalik had issued the order while delivering judgment on a suit filed by the Rivers state house of assembly led by Martins Amaewhule.
The judge ruled that Siminalayi Fubara, the Rivers governor, was wrong to have presented the state’s 2024 appropriation bill to a five-member assembly “that was not properly constituted”.
In December 2023, Fubara presented an N800 billion budget estimate to the Edison Ehie faction of the house of assembly.
The presentation of the budget titled ‘Budget of renewed hope, consolidation, and continuity’ took place at the government house.
Only five lawmakers loyal to Fubara were present during the budget presentation.
The lawmakers in Amaewhule’s faction rejected the budget presentation and instituted a suit against Fubara.
The Rivers house of assembly has been polarised following the rift between Fubara and Nyesom Wike, minister of the federal capital territory (FCT).