Supreme Court Halts Federal Allocations to Rivers State Amid Political Turmoil

The Supreme Court’s order is the latest chapter in a series of legal skirmishes that have defined Rivers State’s political turmoil.

Court halt Rivers allocation

In a landmark ruling on February 28, 2025, Nigeria’s Supreme Court ordered the cessation of monthly financial allocations to Rivers State, a decision that has thrust the oil-rich region into the spotlight amid a festering political crisis. This judicial intervention stems from a prolonged power struggle between Governor Siminalayi Fubara and a faction of lawmakers aligned with Nyesom Wike, the current Minister of the Federal Capital Territory and Fubara’s predecessor as governor. The conflict, rooted in competing claims over the legitimacy of the Rivers State House of Assembly, has now escalated to a point where the state’s access to federal funds hangs in the balance.

The Origins of the Crisis

The rift between Fubara and Wike’s loyalists, led by Hon. Martins Amaewhule, erupted shortly after Fubara assumed office in 2023. Wike, a political heavyweight who governed Rivers State from 2015 to 2023, has maintained significant influence over the state’s political machinery, even after transitioning to a federal role. His allies in the state assembly, including Amaewhule, have clashed repeatedly with Fubara over governance and resource control, turning the House of Assembly into a battleground for supremacy.

An important point in this saga came when Fubara declined to present the state’s Appropriation Bill to the Amaewhule-led faction, defying a prior court order mandating him to do so. This faction, recognized by some judicial rulings as the legitimate assembly, argues that Fubara’s actions undermine constitutional processes. Fubara, however, contends that a rival faction, loyal to him, represents the true legislative authority, further deepening the impasse.

The Supreme Court’s Ruling

The Supreme Court’s latest decision reinstates an earlier judgment, effectively barring the Central Bank of Nigeria (CBN) and the Office of the Accountant General of the Federation from disbursing federal allocations to Rivers State. These funds, derived largely from Nigeria’s oil revenues, are a lifeline for states like Rivers, which plays a critical role in the nation’s petroleum industry. The court’s order hinges on the absence of a constitutionally recognized House of Assembly to oversee the state’s budget a prerequisite for receiving federal disbursements.

In its ruling, the Supreme Court criticized an earlier appellate court decision that had focused narrowly on the management of Rivers State’s consolidated revenue fund. The higher court argued that the broader issue namely, the legitimacy of the state’s legislative body—required resolution to ensure compliance with Nigeria’s constitutional framework. Until this dispute is settled, Rivers State faces an unprecedented financial chokehold.

Political and Economic Implications

Rivers State, located in the Niger Delta, is one of Nigeria’s economic powerhouses, contributing significantly to the country’s oil output. The suspension of federal allocations threatens to disrupt government operations, delay infrastructure projects, and strain public services, potentially sparking unrest in an already volatile region. Local analysts warn that the ruling could exacerbate economic hardship for residents, many of whom depend on state-funded initiatives for their livelihoods.

Politically, the decision amplifies the rivalry between Fubara and Wike, casting a shadow over Nigeria’s broader political landscape. Wike’s influence, both in Rivers State and within the ruling All Progressives Congress (APC) at the federal level, has made this feud a litmus test for state-federal relations. With elections on the horizon, the outcome of this crisis could reshape alliances and power dynamics across the country.

A History of Legal Battles

The Supreme Court’s order is the latest chapter in a series of legal skirmishes that have defined Rivers State’s political turmoil. A Federal High Court had previously weighed in on the assembly dispute, issuing rulings that both sides interpreted in their favor. An appeal followed, only for the Supreme Court to step in and deliver what it described as a clarifying judgment. Yet, far from resolving the conflict, this decision has raised the stakes, leaving the state in a precarious situation.

As Rivers State grapples with the fallout, attention now turns to how Fubara and his administration will navigate this financial stranglehold. Options are limited: reconciling with the Amaewhule-led faction could restore funding but weaken Fubara’s authority, while persisting with his own assembly risks prolonged isolation from federal resources. Meanwhile, Wike’s camp may view the ruling as a victory, though it stops short of delivering a definitive blow to Fubara’s governorship.

For Nigeria, the Rivers State saga underscores the fragility of its federal system, where political disputes often spill into the judiciary and threaten economic stability. As the nation watches, the resolution, or escalation of this crisis could set a precedent for how power is contested and consolidated in one of Africa’s most influential democracies. For now, Rivers State stands at a crossroads, its future shaped as much by courtroom battles as by the will of its people.

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