LG funds: S’Court judgment will impact negatively on economic growth of Rivers – PANDEF
The Pan Niger Delta Forum (PANDEF) has expressed concern over the recent Supreme Court judgment which barred the Federation Account Allocation Committee (FAAC) from releasing local government money to the Rivers State government.
The apex court on Friday stopped FAAC from allowing Rivers State government in accessing local government revenue because Governor Simi Fubara did not follow the guidelines and Electoral act in conducting local government elections last October.
Apart from barring FAAC from releasing money, the court also described the election as a nullity and thus void.
However, PANDEF in a statement signed by its National Publicity Secretary, Chief Dr. Obiuwevbi Ominimini, said the court order was tantamount to grounding the economic growth of the state.
Describing the decision as unjust and detrimental to the economic and social stability of the state, the PANDEF called for an urgent review of the ruling in the interest of national unity and development.
It said the decision would impose hardship on the people of Rivers State, who rely on these funds for essential services, infrastructural development, and economic growth.
“Undoubtedly, the primary casualties of this judicial restraint will be the innocent citizens of Rivers State, for whom these funds serve as a lifeline for economic, social growth, and infrastructural development,” the statement read.
“As a pivotal contributor to Nigeria’s oil and gas sector—the backbone of the nation’s economy—Rivers State should not be subjected to fiscal strangulation owing to a political discord that remains eminently resolvable.”
PANDEF emphasised that withholding statutory allocations from the state was both unjust and counterproductive, warning that such an action could destabilize the peace and economic progress of the Niger Delta region.
The group reminded the federal government and the judiciary that Rivers State has remained a major source of national revenue and should not be punished for political reasons.
“This verdict constitutes a grave impediment to the painstaking peace-building initiatives spearheaded by PANDEF, particularly through the Obong Victor Attah-led Peace and Reconciliation Committee,” the group noted.
“The committee, having already commenced its reconciliatory engagements, has begun to record commendable strides in fostering harmony and stability within the state.”
The statement urged the Supreme Court to reconsider its ruling, citing the long-term consequences such a decision could have on national stability.
It warned that similar actions had led to tensions in the past, referencing the withdrawal of local government funds from Lagos State by former President Olusegun Obasanjo during the administration of Asiwaju Bola Ahmed Tinubu as Lagos State Governor.
“It was widely condemned by Nigerians and the international community,” PANDEF stated. “One, therefore, wonders how such a repetition would emerge again, even in a higher magnitude, in this 21st century with potentially grave implications for peace and security in the entire Niger Delta.”
The group reaffirmed its commitment to peace, justice, and sustainable development, calling on the federal government, political stakeholders, and the judiciary to ensure that Rivers State is not made a victim of political conflicts.
“The sanctity of governance demands that economic imperatives supersede political rivalries for the greater good of the nation,” PANDEF declared.
“We call upon all relevant stakeholders to act swiftly in restoring normalcy and preventing unnecessary hardship on the people of Rivers State.”
