The Sole Administrator of Ahoada-East Local Government Area (LGA), Mr. Goodluck Iheanacho, has accused the Rivers State Sole Administrator, Vice Admiral Ibok Ette Ibas (Rtd), of deducting ₦200 million from the statutory allocations of each of the 23 local government areas in the state.
Mr. Iheanacho made this allegation in a public statement on Sunday, June 23, 2025, amid growing political tension and financial controversy in the state. He claimed that the deductions were made unilaterally and without consultation or justification.
According to Iheanacho, the deducted amount was supposed to be part of the monthly federal allocation disbursed to the local governments. He stated that the action by Vice Admiral Ibas has undermined the financial autonomy of the LGAs and could jeopardize essential services and projects at the local level.
Mr. Iheanacho described the deductions as illegal and called on the state government to provide a clear explanation for the removal of such a significant sum from the local government coffers. He noted that ₦200 million per LGA, if multiplied across the 23 LGAs, amounts to ₦4.6 billion, a figure he believes requires legislative scrutiny and public accountability.
The Ahoada-East Sole Administrator expressed concern that this financial interference could worsen the ongoing political crisis in Rivers State. The state has been embroiled in a power struggle following the controversial removal of elected local government officials earlier this month, with Governor Siminalayi Fubara appointing sole administrators in their place.
Iheaanacho emphasized that the deductions raise serious questions about transparency and fiscal governance in the state. He warned that failure to restore the funds or account for them would lead to legal action and protests from local government administrators and civil society groups.
Vice Admiral Ibas has not publicly responded to the allegations as of the time of reporting. The Rivers State government also has not issued an official statement addressing the claims made by Mr. Iheanacho.
The development comes amid widespread criticism over the decision to replace elected local government chairmen with sole administrators. Several legal experts and opposition figures have described the move as unconstitutional, citing the 1999 Nigerian Constitution which mandates elected local councils.
Political analysts believe that the alleged fund deductions could deepen the ongoing crisis in Rivers State, which has already led to protests, court actions, and heightened tensions between rival political factions.
Observers say the allegations may further strain the relationship between the state government and local authorities, especially as accusations of financial mismanagement become more frequent.
Civil society organizations have begun calling for an independent audit of all local government accounts since the installation of the sole administrators. They argue that fiscal transparency is essential to restoring public trust in the administration.
Meanwhile, residents across several LGAs have expressed frustration over what they describe as declining public services and stalled projects. Many link these challenges to the abrupt leadership changes and now, to the alleged depletion of funds.
The Nigerian Union of Local Government Employees (NULGE) has also reacted to the news, demanding immediate clarification from the state authorities. In a brief statement, the union warned that unauthorized deductions from local government allocations constitute a violation of financial autonomy and could lead to nationwide union action if not addressed.
As tensions rise, legal experts suggest that the matter could head to court if the accusations are not resolved through official channels. Some lawyers have already volunteered to represent affected LGAs in litigation against the state government.
So far, no formal investigation has been launched into the ₦200 million deduction allegation. However, calls are growing for the Economic and Financial Crimes Commission (EFCC) to look into the financial dealings of the Rivers State government under the current administration.
The coming days are expected to be critical for the state’s political and administrative stability as the fallout from the allegations unfolds.
