The supreme court has dismissed the suit filed by the Osun attorney-general (AG) against the federal government on withheld local government allocations due to the state.
In a split decision of six to one, which was delivered on Friday, the apex court held that the Osun AG does not have the legal rights to institute the case on behalf of the 30 LGAs of the state.
THE SUIT
In the suit marked SC/CV/775/2025, Osun state sought 10 reliefs, including a declaration that the attorney-general of the federation (AGF) must obey and enforce court rulings that upheld the election of democratically elected LG councils held on February 22, 2025.
The state sought an order preventing the AGF from paying statutory allocations meant for the 30 councils to members of the All Progressives Congress (APC) who were sacked after their October 15, 2022, election was annulled by both the federal high court on November 30, 2022, and the court of appeal on June 13, 2025.
The state also sought an order directing the AGF to immediately release and pay all withheld monthly allocations and revenues directly into the accounts of the LG councils led by officials elected on February 22, 2025, and sworn in the next day.
The state asked the supreme court to issue an order of perpetual injunction restraining the AGF from further withholding or seizing funds due to its LG councils as long as the state has democratically elected council officials in place.
VERDICT
In the lead judgment read by Mohammed Idris, a judge, the apex court ruled that only LGA chairpersons who won the election retain the right to sue and be sued directly over the matter.
The apex court said since there was no evidence that the Osun attorney-general was briefed by the LGAs, he ought not to have filed the case on their behalf.
The court ruled that the federal government was wrong in withholding the funds of the LGAs, describing the act “as a grave breach” of the constitution.
The apex court rejected the AGF’s contempt allegations against the Osun AG, adding that instead it was the AGF who committed contempt by withholding the funds.
In a minority judgment, Emmanuel Agim ruled that the Osun AG possesses the right to institute the case on behalf of the Osun LGAs.
Agim said the action of the federal government was in bad taste and that withholding LGA funds can cripple activities at the grassroots.
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