A Federal High Court in Abuja has restrained the Central Bank of Nigeria (CBN) from further releasing financial allocations to the Rivers State Government pending when a lawful appropriation act is passed by a validly constituted House of Assembly.
Justice Joyce Abdulmalik issued the order on Wednesday in a judgment on a suit filed by the Rivers State House of Assembly led by Martins Amaewhule.
Justice Abdulmalik held that the decision by Governor Siminalayi Fubara to present the Rivers State’s 2024 Appropriation Bill to a four-member Assembly, that was not properly constituted, should not be allowed to stand.
Financial allocations in Nigeria involve the government distributing resources across key sectors, including education, healthcare, infrastructure, and security.
The country follows an annual budget cycle, where the federal government presents a budget proposal to the National Assembly, outlining expected revenues and expenditures. Key revenue sources include oil and gas exports, various taxes, and non-oil revenues, with oil being the primary contributor.
Funds are allocated to states and local governments through the Federation Account, based on population, landmass, and social factors. While allocations aim to enhance education access, healthcare infrastructure, and national security, they often fall short of international benchmarks like UNESCO recommendations.
Challenges such as corruption, mismanagement, fluctuating oil prices, and overall economic instability limit effective resource utilization. The heavy reliance on oil revenue makes the economy vulnerable during downturns. Recent initiatives focus on diversifying revenue sources, improving budget transparency, and enhancing public financial management to optimize allocations and support sustainable economic growth.
