The Supreme Court has reserved judgment in the legal dispute between the Osun State Government and the Attorney General of the Federation (AGF) over the alleged withholding of statutory allocations to local governments in the state by the federal government.
Justice Uwani Abba-Aji, who led a seven-member panel of the apex court, announced the decision to withhold judgment on Tuesday, October 7, 2025, after hearing arguments from both sides. She stated that the final judgment date would be communicated to all parties at a later time.
The case, filed by the Osun State Government, seeks judicial intervention against the alleged action of the federal government under President Bola Ahmed Tinubu in denying local councils their constitutionally guaranteed monthly allocations. The state argues that the decision to withhold these funds violates both the constitution and the principles of federalism.
Appearing for the Osun State Government, counsel Musibau Adetunbi (SAN) urged the court to compel the AGF to immediately release the statutory allocations due to the 30 local government areas within the state. He also requested the court to issue an order barring the AGF from continuing to withhold, seize, or delay the monthly federal allocations that are meant for the administration of democratically elected local councils.
Adetunbi maintained that the local government chairmen and councillors in Osun State were duly elected and currently in office, emphasizing that denying them funds directly undermines the functionality and autonomy of local governance. He insisted that the reliefs sought by his client are within the constitutional framework and urged the apex court to uphold their arguments.
In his response, counsel to the Attorney General of the Federation, Akin Olujimi (SAN), challenged the jurisdiction of the Supreme Court to entertain the matter under its original jurisdiction. He argued that the suit filed by Osun State lacked sufficient legal grounds to warrant the intervention of the apex court in its current form.
Olujimi further noted that the tenures of the local government chairmen in question will expire on October 22, 2025, implying that the case may soon become academic. However, he acknowledged that once the chairmen’s terms are valid, the appropriate course of action would be to ensure they have access to funds to carry out their constitutional responsibilities.
He urged the court to dismiss the case and refuse the reliefs being sought by the plaintiff, stating that the matter was premature and procedurally flawed.
This case is being closely watched by legal analysts, governance advocates, and other state governments, as it touches on the broader issue of local government autonomy—a topic that has sparked legal and political debates across Nigeria for years.
With the court now having heard both sides, stakeholders are awaiting the Supreme Court’s ruling, which is expected to set a precedent for how intergovernmental financial disputes are resolved, especially concerning local government funding and fiscal independence.
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