KEY POINTS
- Small-scale mining is essential for local economies, supporting millions of livelihoods.
- Environmental and health risks from unsafe practices pose significant challenges.
- Women in ASM face gender-based disparities in income and access to resources.
A Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to halt all further disbursements of monthly allocations to the Rivers State Government, citing constitutional breaches in the state’s budget approval process.
The ruling, delivered by Justice Joyce Abdulmalik on Wednesday, pointed to alleged violations by Governor Siminalayi Fubara in presenting the 2024 budget to the four-member House of Assembly, bypassing the constitutional protocol required for legislative approval.
Court blocks Rivers state funds over budget
Justice Abdulmalik ruled that the allocations received and spent by Rivers State since January were based on an “illegitimate” budget, which she labeled a “constitutional aberration.”
The Fubara administration is restrained from receiving any funds from the CBN, the Accountant General of the Federation, and Zenith Bank and Access Bank until the matter is resolved, according to the court’s decision.
Governor’s actions deemed unlawful
The judge emphasized the constitutional requirement for budget approvals by a fully constituted House of Assembly, declaring the decisions of the four-member assembly backed by Governor Fubara as void.
She referenced earlier rulings by the Federal High Court and the Court of Appeal, which nullified the authority of the Fubara-aligned assembly faction.
In suit FHC/ABJ/CS/984/2024, the House of Assembly, constitutionally recognized to pass appropriation bills, must approve them. Justice Abdulmalik stated that without this approval, any implementation of the budget would be unlawful.
She held that the governor’s actions contravened Sections 91 and 96 of the 1999 Constitution, warning that further bypassing of the legislative process would constitute an affront to the rule of law.
Legal challenge from assembly faction
The court’s order followed a suit filed by a rival faction of the Rivers State House of Assembly, led by Speaker Martin Amaewhule. The Amaewhule-led faction had earlier suspended all state expenditures in July, demanding that Governor Fubara resubmit the 2024 budget to the fully recognized legislative body.
They argued that the four-member assembly loyal to Fubara lacked the constitutional authority to pass or approve the state budget.
CBN’s responsibility and the court’s stand
Justice Abdulmalik underscored the CBN’s responsibility to ensure that budgetary approvals align with constitutional protocols before disbursing funds to state governments.
“Any appropriation bill must pass through the constitutionally recognized House of Assembly,” she stated, reaffirming that “any deviation from this process is unlawful.”
The court also dismissed a request to stay the proceedings, labeling the application “frivolous and vexatious.” Justice Abdulmalik refused to recuse herself from the case, rejecting allegations of bias from the defense.
Implications for Rivers state
The court’s decision has effectively frozen Rivers State’s access to federal allocations until a legitimate budget is submitted and approved by the recognized legislative body.
This development poses a significant challenge to Governor Fubara’s administration, with potential financial disruptions looming if a swift resolution is not reached. The judgment underscores the importance of adhering to constitutional norms in the approval and execution of state budgets.
