Senior Lawyer explains why Court barred CBN from allocating funds to Rivers State government

An Abuja based senior lawyer James Onoja, SAN, and counsel to the recognized lawmakers of Rivers State, has provided clarity on the Federal High Court ruling that prevents the Central Bank of Nigeria (CBN) from allocating funds to the Rivers State government.

In a discussion with journalists, Onoja commended the court for its impartiality, noting that it delivered a fair judgment despite external pressures.

According to Onoja, the Rivers State government violated the constitution of the Federal Republic of Nigeria by presenting the 2024 budget to only a four-member House of Assembly.

Explaining further, Onoja said, “The court deserves commendation for the diligence and impartiality it exhibited in this judgment, despite various pressures questioning whether it should proceed. Nevertheless, the court delivered its judgment.”

“This judgment pertains to the constitutional powers of the court and the explicit provisions of the constitution,” he continued.

“The issues are straightforward. Sections 120, 121, 122, and 123 of the constitution clearly specify the requirements for state expenditures. No funds should be spent without an Appropriation Bill passed by the House of Assembly.”

Onoja said, “The judgment by Justice Omotosho, upheld by the Court of Appeal, indicated that the Rivers State budget was not properly passed. If a budget is not approved within six months, the state should not draw funds from the consolidated revenue.

“This is a matter of law. The court has confirmed that the Rivers State government has not complied with constitutional requirements for budget appropriation and expenditures. The judgment is unequivocal”, he emphasized.

Referring to other rulings involving the Rivers State government, Onoja noted that this decision aligns with the Court of Appeal’s stance, establishing that the state government has violated constitutional provisions on budget and expenditure approval.

Onoja contrasted the Rivers State case with a previous incident involving former Governor Bola Tinubu of Lagos State. During Tinubu’s tenure, he created additional local governments, and then-President Olusegun Obasanjo withheld funds for these local governments, demanding adherence to constitutionally recognized LGAs. Lagos State challenged this action in court, which ruled that Obasanjo had no authority to withhold local government allocations.

In Rivers State’s case, Onoja clarified, “the governor has been spending public funds without an Appropriation Act for 11 months. The APC challenged this as unconstitutional, and the court agreed, ordering the state to submit a budget to the proper assembly. Until this is done, the governor is restrained from further expenditure.

“This decision emphasizes that the proper procedure is to return to the State Assembly for approval or halt government operations,” he said.

Onoja also pointed out that, similarly to Obasanjo’s actions, the Rivers State governor has withheld allocations for 21 local governments for five months and has suspended salaries for State Assembly Commission staff, 27 assembly members, and their aides for 12 months.

“This judgment affirms the rule of law in a democratic society,” Onoja concluded. “The 27-member assembly remains the authentic legislative body until the Federal High Court and Court of Appeal judgments are overturned by the Supreme Court.”