The Supreme Court has criticised the Bola Tinubu-led government for withholding Osun State’s local government funds, even as it faulted the Osun State Government for instituting the action on behalf of the 30 councils without proper authorisation.
In its majority judgment, the Apex Court held that the Osun State Attorney General had no legal right to file the suit on behalf of the local governments.
It ruled that “those who won the local government election and having been inaugurated are the jurisdict persons that can sue and be sued directly.”
The Court, however, declared unequivocally that the Federal Government acted unlawfully by seizing the funds. It held that the action was “in grave breach of the 1999 Constitution.”
Delivering the lead judgment, Justice Mohammed Idris held that the conduct of the Federal Government was constitutionally indefensible.
He stated that “the hand of the federal government was soiled” in its decision to unjustly withhold funds, and admonished it to ensure that allocations are “directly channeled to local accounts.”
The Court also dismissed the Attorney-General of the Federation’s contempt allegations against Osun State, noting that he was “in more contempt than Osun by not paying the fund as required by law.”
While faulting the Federal Government, the Court simultaneously reprimanded Osun State for initiating the suit without proof of consent from the councils. Justice Idris ruled that since “there was no evidence that Osun Attorney General was briefed by the local governments, he ought not to have filed the case on their behalf.”
In a minority judgment, Justice Emmanuel Agim disagreed with the majority, insisting that the Osun Attorney General had the authority to file the suit. He added that the Federal Government’s action was unacceptable, saying it was “in bad taste because it was capable of crippling the activities of the Councils.”
In an enrolment of order dated September 26, 2025, in Suit No. I/1149/25, filed by the Attorney General of Osun State and the Osun State Local Government Service Commission against UBA, the claimants sought interim protection over local government allocations.
Earlier, a review of Federal Allocation Account Committee data released by the Office of the Accountant General and the National Bureau of Statistics shows that the total amount yet to be released to the state government stood at ₦73.7 billion as of August 2025.
This figure represents the withheld funds for the period between March and August 2025, a six-month period.
In March, the state was expected to receive ₦11.9 billion; the amounts for April, May, and June were ₦11.2 billion, ₦11.7 billion, and ₦12.1 billion, respectively. Further review shows that the figure for July 2025 stands at ₦12.8 billion, while that of August stands at ₦14 billion.
Earlier, it was reported that the Nigerian government had withheld Osun State’s local government allocations since March 2025.
The Osun state government is yet to react to the latest decision by the Supreme Court or state its next steps.
There have been a series of controversies surrounding the non-release of the funds, which stemmed from the conduct of a local government election in the state in February, a move faulted by the All Progressives Congress, which controls the Federal Government and oversees the disbursement of funds to states and local governments.
Previously, a High Court of Justice, Oyo State, sitting in Ibadan, issued an interim order restraining the United Bank for Africa (UBA) Plc from releasing statutory funds belonging to the 30 local governments in Osun State.
In the enrolment of the order dated September 26, 2025, in Suit No. I/1149/25, filed by the Attorney General of Osun State and the Osun State Local Government Service Commission against UBA, the claimants sought interim protection over local government allocations.
The claimants requested “an Order of Interim Injunction restraining the Defendant/Respondent from paying and/or causing to be paid all and/or any of that funds which constitute the statutory Local Government funds of all the 30 Local Governments in Osun State as listed under Osun State in the 1st Schedule, Part 1 of the 1999 Constitution of the Federal Republic of Nigeria pending the hearing and determination of the Motion on Notice for an order of interlocutory injunction filed in this case.”
They further prayed the court for “an Order of Interim Injunction of this Honourable Court mandating the Defendant/Respondent not to release all the said funds mentioned in relief one above and/or any part of it to any person however he may be, be it artificial or natural pending the hearing and determination of the Motion on Notice for an order of interlocutory injunction filed in this case.”
The motion ex-parte was supported by an affidavit deposed to by Olufemi Akande Ogundun. Counsel to the claimants, A.A. Abass Esq, moved the motion on September 26, 2025.
In his ruling, Justice A.L. Akintola stated: “Having carefully considered the motion Ex-parte together with the supporting affidavit and the Exhibits attached on the one hand as well as the written address of counsel and the affidavit of urgency filed along with the motion, this court is satisfied that the claimants/applicants have successfully made out a case for the urgent intervention of this court at this stage as any delay may foist on the claimants/applicants an irreversible harm, injury or situation of helplessness.”
The judge further clarified: “In any event, it is only an interim order that the defendant/respondent will have the opportunity to possibly challenge once the defendant turns up to join issues with the claimants on the motion on notice for an order of interlocutory injunction already filed in this case. Accordingly, the interim orders of injunction sought are hereby granted as prayed, on the claimants/applicants’ motion Ex-parte dated 26th September, 2025 and filed on the same date in this case.”
Leave a Reply