HEDA faults CBN’s response on Rivers LG funds, alleges contempt…

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The Human and Environmental Development Agenda (HEDA Resource Centre) has condemned the Central Bank of Nigeria (CBN) over its response to a letter demanding the suspension of local government allocations to Rivers State, describing the Bank’s position as “artful dodging” and a clear display of contempt for the Supreme Court.

In a statement signed by its Chairman, Olanrewaju Suraju, the civil society organisation expressed deep disappointment with the CBN’s reply to its letter dated April 28, 2025, which urged the apex bank to halt the disbursement of funds to unelected local government caretakers in Rivers State.

HEDA stated that the CBN’s justification anchored on pending litigation demonstrates a blatant disregard for the Supreme Court’s definitive interpretation of Section 162 of the 1999 Constitution (as amended), particularly the judgment in AG Federation vs. AG Abia State & Ors (2004) 17 NWLR (Pt. 1966) 1. The Court had ruled unequivocally that local government allocations must be paid directly to democratically elected Local Government Councils.

According to HEDA, the pending cases cited by the CBN have no bearing on the Supreme Court’s directive and do not negate its obligation to adhere to the constitutional mandate. The group also accused the CBN of hiding behind irrelevant court matters to avoid compliance, thereby undermining democratic governance and constitutional order.

HEDA called on the CBN to immediately suspend all payments to the Sole Administrator of Rivers State’s local governments until elected officials are restored, warning that continued disbursement would amount to executive lawlessness and disrespect for the judiciary.

“We demand that the CBN immediately complies with the Supreme Court’s judgment and suspend payments to the Sole Administrator of Rivers State, pending the restoration of democratically elected local government councils. The CBN’s failure to act will be seen as a clear case of executive recklessness, contempt of court by the Governor, and disregard for the rule of law.” the statement concludes.

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