By Peter Omopo
A seven-member panel of the Supreme Court of Nigeria on Tuesday reserved judgment in a suit filed by the Osun State Government seeking to compel the Attorney-General of the Federation (AGF) to release the state’s withheld local government funds.
The panel, led by Justice Uwani Aba’aji, announced that judgment would be delivered on a date to be communicated to the parties after hearing arguments from both sides.
The Osun State Attorney-General, represented by Musbau Adetumbi (SAN), argued that the AGF had unlawfully directed the release of statutory allocations meant for the state’s 30 local government councils to the sacked All Progressives Congress (APC) chairmen and councillors. The AGF was represented by Chief Akin Olujimi (SAN).
The suit, numbered SC/CV/773/2025, seeks ten reliefs, including a declaration that the AGF is constitutionally obligated to comply with existing judgments of the Federal High Court and the Court of Appeal, which upheld the legitimacy of democratically elected local government councils established by elections held on February 22, 2025.
Osun State is also asking the apex court to restrain the AGF from further withholding monthly allocations, which it claims have been unlawfully seized since March 2025, despite the existence of elected councils. The state further demanded that the funds be paid directly to local government accounts controlled by officials sworn in on February 23, 2025.
Adetumbi told the court that the AGF, in a letter dated March 26, had directed the payment of the funds to the sacked APC officials, even while the case was pending. He said, “The defendant attempted to destroy the subject matter by trying to pay the money to one of the contending parties through the Central Bank of Nigeria, but we were fortunate to secure an order stopping the release.”
He urged the court to grant all the reliefs sought and dismiss the AGF’s objections.
However, Olujimi, counsel to the AGF, urged the Supreme Court to dismiss the case, describing it as an abuse of court process and a contempt of the judiciary. He argued that the Supreme Court’s jurisdiction had not been properly invoked, noting that the dispute was political and already before several lower courts.
“This matter stems from a political disagreement between the APC and the PDP over control of Osun’s local government councils,” Olujimi said. “There are no fewer than seven similar cases before various high courts. The plaintiff lacks the legal standing to bring this case, and it should be dismissed for lack of merit.”
After hearing the submissions, the Supreme Court panel reserved judgment and struck out a related suit, SC/379/2025, which the Osun government said was filed before the AGF’s directive on the funds.
The outcome of the case is expected to have significant implications for fiscal federalism and the autonomy of local governments in Nigeria.
