The Supreme Court has struck out a suit filed by the Osun State Government seeking to compel the Federal Government to release withheld allocations due to the state’s 30 Local Government Councils.
In a split decision of six to one, the seven-member panel on Friday ruled that the suit lacked merit, holding that the Attorney General of Osun State had no legal standing to initiate the action on behalf of the Local Government Councils.
Delivering the lead judgement, Justice Mohammed Idris held that the councils are constitutionally recognised as autonomous entities capable of suing and being sued, adding that only disputes directly involving states and the Federal Government fall within the court’s original jurisdiction.
The apex court maintained that the matter ought to have been instituted by the councils themselves, not the state government.
It dismissed Osun’s claim that the case qualified as public interest litigation.
READ ALSO: AGF Approves Prosecution of Ex-Senator Andy Uba Over N400m Fraud
Although the court upheld the preliminary objection filed by the Attorney General of the Federation (AGF), it cautioned the Federal Government to fully comply with its earlier ruling granting fiscal autonomy to all 774 Local Government Areas across the country.
Osun State, through suit SC/CV/775/2025, had sought 10 declarations and orders, including a pronouncement compelling the AGF to obey previous court decisions affirming the legitimacy of democratically elected councils following the February 22, 2025 local government elections.
The state argued that the AGF acted unlawfully by directing the release of statutory allocations to former APC chairmen and councillors removed from office by court judgements delivered in 2022 and 2025.
READ ALSO: Court to Hear Nnamdi Kanu’s Motion Seeking Transfer from Sokoto Prison Dec 8
It also sought an order restraining the AGF from withholding or diverting LG funds and another directing immediate payment of all outstanding allocations to the duly elected officials sworn in on February 23, 2025.
What Transpired
During proceedings, Osun’s counsel, Musibau Adetunbi, SAN, alleged that the AGF attempted to pay the disputed funds to sacked officials despite the pending case, adding that the disbursement was halted only after the state secured a court order.
The Federal Government, however, insisted that no valid cause of action was established. Counsel to the AGF, Akin Olujimi, SAN, argued that the state was attempting to frustrate APC local government officials whose tenure expired on October 22, and maintained that the suit constituted an abuse of court process.
He contended that the Supreme Court could not be invoked in matters where the plaintiff lacked locus standi and where the dispute did not fall under its constitutionally defined original jurisdiction.
With Friday’s ruling, the apex court has put an end to the legal challenge but reiterated that the Federal Government must honour its obligation to ensure full fiscal autonomy for local governments nationwide.
Rafiyat Sadiq is a political, justice, and human rights reporter with Pinnacle Daily, known for fearless reporting and impactful storytelling. At Pinnacle Daily, she brings clarity and depth to issues shaping governance, democracy, and the protection of citizens’ rights.
