Political unrest reignites fears in Nigeria’s crude capital

…Lawmakers issue 48-hour notice to Fubara

A resurgence of political unrest in Port Harcourt, the heart of Nigeria’s oil industry, has sparked renewed fears about the security of energy infrastructure and the potential impact on the nation’s fragile economy.

A five-member panel of Nigeria’s apex court on Friday affirmed the judgment of a federal high court that barred the Central Bank of Nigeria (CBN) and the accountant-general of the federation from releasing statutory monthly allocations to the Rivers state.

The Supreme Court also nullified the local government election held in Rivers on October 5, 2024.

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The court also ordered the Martins Amaewhule-led faction of the Rivers state house of assembly and other elected members to resume sitting.

The Amaewhule-led faction of the Rivers assembly is loyal to Nyesom Wike, minister of the Federal Capital Territory (FCT) and immediate former governor of the state.

Since then, a political crisis has unfolded, impeding governance in the state and risking crude production in Africa’s largest oil producer.

On Monday, the Rivers State House of Assembly gave Similaya Fubara, the governor of Rivers state 48 hours to present the 2025 budget to the lawmakers.

“That pursuant to the order of the Supreme Court in Suit no.: SC/CV/1174/2024 for the stoppage of Statutory Federal allocations to the Rivers State Government and halting of spending from the Consolidated Revenue Fund of Rivers State pending the passage of an Appropriation Bill, you are requested to present the 2025 Appropriation Bill to the House in line with the provisions of the 1999 Constitution as amended,” the lawmakers said in a resolution signed by Amaewhule.

“That the House expects you to present the 2025 Appropriation Bill within 48 hours,” he added.

In his remarks, Amaewhule condemned Fubara’s directive to the heads of Local Government Administration to take charge of the councils, saying it is illegal and against the Supreme Court’s decision.

The lawmakers drew the governor’s attention to “the provisions of the 1999 Constitution as amended; the Rivers State Local Government (Amendment) Law, 2023 as well as the Judgement of the Supreme Court in Suit No.: SC/CV/343/2024 that prohibits the administration of Local Governments by HLGAs or any other persons other than democratically elected officials”.

In January 2025, Fubara had already signed the 2025 appropriation bill into law after it was passed by the rival faction of the house led by Victor Oko-Jumbo.

However, the Amaewhule group is now insisting that the governor formally present the budget Fubara had christened “Budget of Inclusive Growth and Development,” adding a fresh layer of twist to the political events in the oil-rich state.

Implication for economy

For decades, crude oil from the delta has accounted for the larger chunk of the country’s export earnings.

Rivers, one of the six states in the region, is home to pipelines that transport crude from other states to its Bonny export terminal. In 2021, the state accounted for 6.5 percent of Nigeria’s entire revenue.

The Pan Niger Delta Forum (PANDEF) said the new said supreme court judgment would impose unwarranted hardship on the people and cause mayhem in the state.

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“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,” Sunday Ominimini, national publicity secretary of PANDEF said.

Tonye Monye, a professor of political economy, emphasised the domino effect this crisis could have, explaining that the political crisis in Rivers State serves as a stark reminder of Nigeria’s economic vulnerability.

He warned that if the situation in Rivers State was not contained, it could spread to other parts of the Niger Delta, causing even more damage to the national economy.

Nigeria’s crude production averaged 1.75 million barrels per day in Feburary, according to data from the Nigerian Upstream Petroleum Regulatory Commission.