The Supreme Court has reserved judgment in the suit filed by the Osun State government against the Attorney General of the Federation (AGF) over the alleged withholding of local government funds due to the state.
Justice Uwani Abba-Aji, who led a seven-man panel of Justices, announced that judgment would be delivered on a date to be communicated to all parties after hearing arguments from both sides.
The Attorney General of Osun State, through his counsel, Musibau Adetunbi, invoked the Supreme Court’s original jurisdiction, seeking an order directing the AGF to immediately release statutory allocations to the chairmen and councillors of the state’s 30 local government areas.
Adetunbi argued that the AGF erred by issuing a letter recognizing the disputed All Progressives Congress (APC) local government chairmen, despite the matter being before the court. He further noted that the elections which produced the APC officials had already been nullified by a Federal High Court, a decision later upheld by the Court of Appeal in Abuja.
The Osun AG also sought an order restraining the AGF from further withholding or seizing monthly allocations and revenues due to the local governments, asserting that the state had democratically elected officials in place.
In response, counsel for the AGF, Akin Olujimi, urged the Supreme Court to dismiss the suit on several grounds. He argued that the plaintiff lacked the legal authority to bring the case directly before the apex court, as it fell outside its original jurisdiction. Olujimi also maintained that the case disclosed no valid cause of action, adding that the tenure of the disputed council chairmen runs until October 22, 2025, and therefore, the funds should be released to them for council operations.
He further accused the Osun government of abusing court processes by filing multiple cases on the same issue before different courts.
After hearing the submissions from both parties, Justice Abba-Aji reserved judgment to a later date.
What you should know
The case marks a significant test of the Supreme Court’s interpretation of federal authority over state and local government finances.
The ruling will determine whether the AGF acted within the law by withholding Osun’s local government allocations, a decision that could set a precedent for future disputes between state governments and federal authorities.
