Court of Appeal Sets Aside Order Restraining Release of Funds to Rivers State

In a landmark judgment, the Court of Appeal in Abuja has overturned a Federal High Court ruling that restrained the Central Bank of Nigeria (CBN) and the Accountant General of the Federation (AGF) from releasing funds to the Rivers State Government. This decision has far-reaching implications for the state’s finances and governance.

Background of the Case

The Federal High Court had earlier ruled in favor of a faction of the All Progressives Congress (APC), which challenged the conduct of local government elections in Rivers State. The court restrained the CBN and AGF from releasing funds to the state government, citing concerns over the legitimacy of the local government elections.

Court of Appeal Judgment

However, the Court of Appeal has now set aside the Federal High Court’s judgment, ruling that the lower court lacked jurisdiction to entertain the suit. The appellate court held that the Federal High Court’s order was unconstitutional and restrained the Rivers State government from receiving funds due to the state from its consolidated revenue fund.

Implications of the Judgment

The Court of Appeal’s judgment has significant implications for the Rivers State government and its people. With the judgment, the 23 local council elections in Rivers State have been validated, and the federal allocation to the state and local governments will continue as usual.

Reaction from Stakeholders

The judgment has been welcomed by the Rivers State government, with Commissioner for Information and Communications, Joe Johnson, expressing relief that the judgment has restored confidence in the judiciary. “We are grateful to the Court of Appeal for upholding the law and ensuring that the Rivers State government can continue to receive its rightful allocation,” Johnson said.

Other stakeholders, including the Action Peoples Party, have also hailed the judgment, describing it as a victory for democracy. “This judgment is a testament to the independence of the judiciary and its commitment to upholding the rule of law,” said a spokesperson for the party.

Conclusion

The Court of Appeal’s judgment setting aside the order restraining the release of funds to Rivers State is a significant development that has far-reaching implications for the state’s finances and governance. As the state government and its people celebrate this victory, it is clear that the judiciary has played a crucial role in upholding the rule of law and ensuring that the state can continue to receive its rightful allocation.