The Federal Government of Nigeria has announced the suspension of monthly federal allocations to Rivers State, citing a court order as the legal basis for the move. The decision was made following a ruling by a Federal High Court, which directed the cessation of the state’s access to its share of federal revenues.
According to a statement from the Ministry of Finance, the court's order stems from unresolved legal and financial disputes between the Rivers State government and the federal government. The decision to suspend federal allocations is in compliance with the judicial pronouncement, which was issued on November 20, 2024.
The federal allocation, which is an essential part of the state’s revenue for the funding of public services and infrastructure development, has been an ongoing matter of contention between the two parties. Rivers State, one of Nigeria's oil-rich states, has frequently clashed with the federal government over resource control, revenue sharing, and other fiscal matters.
The Nigerian government has assured the public that all constitutional and legal avenues will be explored to resolve the dispute while ensuring the equitable distribution of national resources. "This decision, although difficult, is necessary to uphold the rule of law and ensure that the country’s legal framework is respected," said a spokesperson from the Ministry of Finance.
Rivers State officials have expressed strong opposition to the decision, arguing that it will have devastating effects on the state's ability to meet its financial obligations and serve its people. Governor Nyesom Wike of Rivers State has vowed to challenge the court order and work towards a swift resolution that will restore the state’s allocation.
“We will not stand by while our state is unjustly punished. This is an attack on our people, and we will explore every legal option to reverse this order,” Governor Wike said in a statement.