SUPREME COURT RESERVES JUDGMENT IN OSUN STATE LOCAL GOVERNMENT FUNDS DISPUTE AGAINST ATTORNEY GENERAL OF THE FEDERATION

The Supreme Court of Nigeria has reserved judgment in a landmark case filed by the Osun State government against the Attorney General of the Federation (AGF) over the withholding of statutory allocations meant for the state’s 30 local government councils. The seven-member panel, led by Justice Uwani Abba Aji, heard arguments from both parties before deciding to reserve judgment, with the date to be communicated to the litigants later.

Osun State, represented by Musibau Adetunbi, SAN, is challenging the AGF’s decision to block funds for the local councils since March, accusing the federal government of acting unconstitutionally. The state seeks declarations that the freeze is unlawful, an order for immediate release of tens of billions of naira in withheld allocations, and a restraint on future withholding by the Federal Government.

“We urge Your Lordships to uphold our arguments and grant all reliefs sought by our client,” Adetunbi pleaded, stressing the AGF wrongly recognized APC local government chairmen despite court rulings nullifying their elections.

Conversely, Akin Olujimi, SAN, representing the AGF, urged the apex court to dismiss the suit, citing multiple grounds. “The plaintiff lacks locus standi to bring this case before the Supreme Court invoking original jurisdiction because the matter is essentially between two political parties,” Olujimi argued. He contended the Supreme Court lacks jurisdiction as the suit wasn’t properly brought directly to the apex court and asserts similar cases are pending in seven other High Courts.

Olujimi added the disputed council chairmen’s tenure runs till October 22, suggesting funds should go to them for council administration. “The suit does not disclose any cause of action and is an abuse of process. I urge Your Lordships to uphold preliminary objections and dismiss this suit,” he stated.

The Osun State government insists local government elections won by the PDP have been upheld by the Federal High Court and Court of Appeal, contrasting the Federal Government’s stance questioning poll legitimacy.

Justice Abba Aji acknowledged an Ibadan High Court order restraining banks from releasing allocations to sacked APC chairmen, effectively preserving the dispute’s subject matter pending Supreme Court determination.