The Traffic

"Tensions Rise as Court Reserves Verdict on Rivers State LGA Fund Blockade"

Yakubu Haruna Yakubu 

In a high-stakes legal battle, the Federal High Court in Abuja has reserved judgment on a suit seeking to stop federal allocations to Local Government Areas (LGAs) in Rivers State, a move that could have significant implications for local governance and funding in the region.

The lawsuit, filed by the Hon. Martins Amaewhule-led faction of the Rivers State House of Assembly, targets several key players, including the Central Bank of Nigeria (CBN), Zenith Bank Plc, Access Bank Plc, and the Accountant-General of the Federation. At the heart of the dispute is whether the Federal Government should withhold funds allocated to Rivers State LGAs, a decision that could drastically affect their operations.

Jurisdictional Dispute and Accusations of Bias

At the resumed hearing, Rivers State, represented by Senior Advocate of Nigeria (SAN) Gordy Uche, raised objections about the court’s jurisdiction. Uche argued that the Federal High Court in Abuja lacked the authority to hear the case, as it should be handled by the Federal High Court in Rivers State. The state has already filed an appeal with the Court of Appeal in Abuja, challenging the court’s territorial jurisdiction.

Additionally, Uche called for a stay of proceedings, insisting that the Court of Appeal was already set to hear the jurisdictional dispute under appeal number CA/ABJ/CV/1197/2024.

The stakes in this case were further heightened by accusations of bias. Defendants, including the Rivers State Accountant-General, the CBN, and other respondents, expressed concern over the conduct of Justice Joyce Abdulmalik. The defendants, through their respective counsels, questioned the judge’s objectivity and described her handling of the case as "strange and unbelievable."

Rivers Government Fights Back

Despite these challenges, Justice Abdulmalik rejected the motions brought forward by the Rivers State Government and its co-defendants. In a decisive ruling, she described their applications as "frivolous, vexatious, unwarranted, and mischievous," dismissing attempts to remove her from the case.

Her refusal to step down from the matter, coupled with the adjournment for judgment, has now set the stage for a highly anticipated verdict. The final decision could impact local governance in Rivers State, as withholding federal allocations to LGAs would significantly hinder their ability to provide essential services.

What’s at Stake?

The case touches on broader issues of federalism, local autonomy, and the financial stability of LGAs in Rivers State. If the court sides with the Amaewhule faction, it could lead to a suspension of federal funds, raising questions about how LGAs will operate without their primary source of revenue.

On the other hand, a ruling in favor of the Rivers State Government could set a precedent, solidifying the protection of LGA allocations from political and legal interference.

With tensions running high and accusations of bias casting a shadow over the case, all eyes are now on the Federal High Court as it prepares to deliver its judgment. Will Rivers State’s LGAs face a funding freeze, or will the court uphold their financial lifeline? The answer, expected soon, could reshape the landscape of local governance in the state.