BREAKING: Supreme Court Strikes Out Osun State’s Suit Over LG Funds, Rebukes FG
Abuja – The Supreme Court on Friday delivered a split decision in a high-profile case concerning local government finances, striking out a suit filed by the Attorney General of Osun State against the Attorney General of the Federation over the alleged unlawful withholding of statutory allocations.
In a majority ruling of six to one, the apex court held that the Osun State Attorney General lacked the legal standing (locus standi) to institute the action on behalf of the state’s 30 local government councils. The court affirmed that only duly elected and inaugurated local government officials possess the legal capacity to sue or be sued in matters directly affecting their administration and finances.
Despite dismissing the suit on procedural grounds, the Supreme Court issued a strong condemnation of the Federal Government’s conduct. In the lead judgment delivered by Justice Mohammed Idris, the court declared that the withholding of funds constitutionally due to local governments constitutes a “grave breach” of the 1999 Constitution and a violation of the court’s earlier judgment affirming local government financial autonomy.
Justice Idris stated that the Federal Government’s hands were “soiled” by the illegal seizure of funds and urged immediate compliance with constitutional provisions that mandate direct allocation of funds to local government accounts.
The court also dismissed contempt allegations raised by the AGF against Osun State, ruling instead that the Federal Government was in greater contempt for its failure to disburse the funds as legally required.
In a dissenting opinion, Justice Emmanuel Agim upheld the right of the Osun Attorney General to file the suit and strongly criticized the withholding of funds, warning that the practice could paralyze grassroots governance across Nigeria.
The Osun State Government was represented in the matter by its counsel, Musibau Adetunbi, SAN.
This ruling clarifies procedural limits on legal representation for local governments while reaffirming the constitutional imperative of direct funding, leaving the door open for properly constituted suits in the future.
