OSUN GOVT DRAGS FG TO SUPREME COURT OVER WITHHELD LG ALLOCATIONS
Read Time:3 Minute, 28 Second
By: Sefiu Ajape
- Challenges Transfer of LG Funds Case To Abuja
The Osun State Government has filed a suit at the Supreme Court of Nigeria against the Attorney-General of the Federation (AGF), accusing him of unlawfully withholding statutory allocations due to its 30 local government councils since March 2025.
In the originating summons filed on Monday by a team of lawyers led by Mike Ozekhome, SAN, and Musibau Adetunbi, SAN, the state is asking the apex court to order the Federal Government to release all withheld funds and halt what it described as “an unconstitutional and arbitrary seizure” of local government allocations.
The plaintiff, Attorney-General of Osun State, argued that the AGF disregarded judgments of the Federal High Court, Osogbo Division, delivered on November 30, 2022, and the Court of Appeal ruling of June 13, 2025, which recognized the chairmen and councillors elected on February 22, 2025.
The summons, supported by a 35-paragraph affidavit deposed to by Finance Commissioner Ogungbile Adeola Olusola, stated that in a March 26, 2025 letter, the AGF advised that funds be withheld, citing what he called a local government crisis in Osun.
Osun insists that the Court of Appeal ruling resolved the matter by affirming the February 2025 elections and nullifying the October 15, 2022 local government polls held under the previous administration.
The state is seeking declarations that the AGF has no constitutional authority to withhold allocations or act against valid court judgments, and wants the Supreme Court to order the immediate release of all funds since March, paid directly into the accounts of the duly elected councils.
Among its prayers, the state is asking for a perpetual injunction preventing the AGF from “withholding, suspending, or seizing” local government allocations in the future, as long as democratically elected councils remain in place.
“The seizure, suspension, withholding and/or refusal to pay the allocations and revenues due to the constituent local government councils of the Plaintiff State… is unconstitutional, unlawful, wrongful and ultra vires the powers of the Defendant,” the suit stated.
The originating summons also emphasized that Section 7 of the 1999 Constitution guarantees the existence of democratically elected councils, while Section 287 obliges the AGF to enforce court judgments, not undermine them.
In support of its case, Osun raised five constitutional issues for determination, questioning whether the AGF can disregard binding judgments, continue citing a “perceived Local Government crisis,” or issue opinions contrary to a Court of Appeal ruling delivered on June 13, 2025.
It also challenged whether the AGF, “in his capacity as the Chief Law Officer of the Federation,” can assume the constitutional role of the Supreme Court.
Meanwhile, Osun has also filed a related suit at the Federal High Court, Osogbo, challenging the transfer of an earlier case on the allocations from Osogbo to Abuja.
On August 25, 2025, the state, through counsel Musibau Adetunbi, SAN, asked the court to stay proceedings in that case (FHC/OS/CS/94/2025) pending determination of the fresh Supreme Court suit, warning against conflicting judgments.
In an affidavit, Permanent Secretary of the Ministry of Local Government and Chieftaincy Affairs, Olufemi Akande Ogundun, described the Federal Government’s actions as “an affront to the rule of law,” insisting that only the Supreme Court can resolve the constitutional issues.
The state also opposed the Chief Judge of the Federal High Court’s August 21, 2025 directive transferring the case to Abuja, describing the order as a “purported fiat” that violates court rules and the Chief Judge’s May 28, 2025 vacation notice, which had designated Lagos as the nearest vacation court for Osogbo matters.
Osun further accused the AGF of “self-induced urgency,” noting that despite being served with originating processes, he delayed for over 80 days before filing an affidavit of urgency on August 13, 2025.
It argued that the transfer order “casts the lot of the court with the AGF” and risks creating a perception of bias.
With the case now before the Supreme Court, the Osun government has urged the judiciary to suspend all lower court proceedings until the apex court gives a final ruling.
No date has been fixed yet for hearing.
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