A recent Federal High Court ruling has halted federal monthly allocations to Rivers State, intensifying a political standoff that threatens the state’s economic stability. The ruling, issued by Justice Joyce Abdulmalik, restricts the Central Bank of Nigeria (CBN) from releasing any funds from the consolidated revenue account to the state government. The judgement has prompted renewed calls for Rivers to explore alternative economic solutions.
Commenting on the court’s decision, Tonye Cole, co-founder of Sahara Group, outlined two critical options available to the Rivers State Governor. “One, is to seek if there’s any resolution to this whole brouhaha. I think that’s a difficult road to take, but it’s one that has to be considered,” he stated during an interview on Lunchtime Politics on Channels Television from 9:52. Cole warned that the current deadlock could lead to prolonged legal battles, delaying vital developmental projects in the state. He emphasized that, “unfortunately in all these, you are going to see any kind of development in Rivers State as long as this continues.”
The alternative, according to Cole, would involve the governor exploring an economy independent of federal allocations, a challenging but possible path. “We’re going to do without the allocations and…look inwards and create an economy that can sustain the state from the inside. It’s difficult, but it’s possible,” he remarked, stressing that whatever route the governor takes, addressing the ongoing court cases will be paramount.
The court’s decision comes amid long-standing political divisions in Rivers State, where tensions between Governor Siminalayi Fubara and key figures in the state’s legislature have escalated in recent months. This division has led to legal challenges, particularly regarding the state budget and the local government allocations. Fubara now faces the task of navigating through this financial crisis while maintaining peace and stability in the state.