The Supreme Court of Nigeria has reserved judgment in the high-profile legal battle between the Osun State Government and the Attorney General of the Federation (AGF) over the alleged unlawful withholding of local government funds.
A seven-man panel of Justices, led by Justice Uwani Abba-Aji, announced that the court would deliver its judgment on a date to be communicated later, after hearing final arguments from both parties.
Osun State Seeks Immediate Release of LGA Allocations
At the center of the legal dispute is a suit filed by the Attorney General of Osun State, urging the apex court to compel the AGF to release statutory allocations to elected chairmen and councillors across the 30 local government areas (LGAs) in the state.
Lead counsel to the plaintiff, Musibau Adetunbi (SAN), invoked the Supreme Court’s original jurisdiction, arguing that the AGF acted beyond his powers by issuing a letter recognizing APC-backed chairmen, despite a subsisting court ruling nullifying their elections.
Adetunbi submitted that the elections that brought the APC chairmen to office had been invalidated by a Federal High Court and the decision was upheld by the Court of Appeal in Abuja. He asked the court to stop the AGF from further withholding monthly allocations and revenues due to the LGAs, now headed by democratically elected officials.
“The continued seizure of Osun’s local government funds is illegal and undermines democratic governance,” Adetunbi told the court.
AGF Opposes Suit, Cites Lack of Jurisdiction
Opposing the suit, Akin Olujimi (SAN), counsel to the Attorney General of the Federation, urged the Supreme Court to dismiss the case, arguing that Osun State lacked the legal standing to bring the matter directly before the apex court.
He further contended that the Supreme Court lacked original jurisdiction, asserting that the matter did not disclose any reasonable cause of action. Olujimi maintained that the tenure of the disputed APC local government chairmen remains valid until October 22, 2025, and that they should rightfully receive and manage the funds.
“This is an abuse of court process. Similar cases are already pending in lower courts involving the same parties,” Olujimi argued.
