Supreme Court reserves judgment in Osun govt’s suit over withheld LG funds

The Supreme Court of Nigeria has reserved judgment in the suit filed by the Osun State Government seeking to stop the Attorney General of the Federation (AGF) from releasing withheld local government funds to chairmen elected under the All Progressives Congress (APC).

The case, which has drawn significant political attention in the state, centers on the control and disbursement of local government allocations following a change in administration.

The Osun State Government, led by Governor Ademola Adeleke, approached the Supreme Court to challenge the alleged move to disburse funds to former APC-aligned local government chairmen whose tenures were reportedly terminated following a court judgment.

Representing the Osun State Attorney General, Musbau Adetumbi (SAN) urged the apex court to uphold the state’s request, insisting that the funds in question should not be released to the suspended APC chairmen. On the other hand, Chief Akin Olujimi (SAN) appeared for the AGF, arguing that the federal government acted within its powers.

Justice Aba’aji, who led a seven-man panel of Justices during Tuesday’s proceedings, announced that the date for judgement delivery in the suit numbered SC/CV/773/2025 would be communicated to the two parties when it is ready.

In the suit, the Osun Attorney General sought order of the apex court directing the AGF to immediately release the statutory allocations to chairmen and councilors validly elected for the 30 LGAs of Osun State.

Besides, the plaintiff who invoked the Supreme Court’s original jurisdiction based on a letter by the AGF according recognition to the disputed APC chairmen, also sought an order stopping the AGF from further withholding, suspending or seizing monthly allocations and revenues standing to the credit of the constituents’ local lovernments, having democratically elected chairmen in place.

The grouse of the Osun Attorney General was that the AGF was wrong in his letter recognizing APC LG chairmen when the matter was pending before court of records.

He also predicated his case on the ground that the election that brought in the APC officials as LG chairmen and councillors had been nullified by a Federal High Court and upheld by the Court of Appeal in Abuja.

Adetumbi, while presenting the case of the plaintiff, pleaded with the seven Justices to uphold his arguments and grant all the reliefs sought by his client.

However, in opposition, the AGF represented by Akin Olujimi, SAN, argued a preliminary objection where he urged the apex court to dismiss the case of the plaintiff on various grounds.

Among others, the Olujimi argued that the plaintiff lacked locus standing (legal power) to bring the case before the Supreme Court to invoke the original jurisdiction because the matter is between two political parties.

He also contended that the Supreme Court lacked jurisdiction to entertain the suit because the suit was not competent to be presented directly to the apex court as done by the plaintiff.

The senior lawyer argued that the suit did not disclose any cause of action adding that the tenure of the disputed council chairmen is still running till October 22 and that the proper thing was for the statutory allocation to be be released to them to run the councils.

Similarly, he argued that the Osun State Attorney General had engaged in abuse of court processes by filing cases in about seven high courts on the same subject with the same parties.

He therefore urged the court to refuse the reliefs sought by the plaintiff and dismiss the suit in its entirety.