The Supreme Court has struck out the suit filed by the Osun government challenging the federal government’s withholding of statutory allocations meant for its 30 local government councils since March 2025.
In a split decision of six to one, the apex court held that the Attorney-General of Osun has no legal right to institute the suit on behalf of the councils, noting that the elected chairmen are the juristic persons empowered to sue unless they expressly delegate such authority.
The court, however, held that the Federal Government has no constitutional power to withhold funds meant for the local governments under the 1999 constitution.
In the lead judgment, Justice Mohammed Baba Idris said the federal government’s “hands were soiled” when it sought to seize the funds rather than channel them directly into the councils’ accounts.
The court also dismissed the Federal Government’s contempt application against Osun, stating that the federal authorities were themselves in “greater contempt” for failing to release the allocations.
In a minority judgment, Justice Emmanuel Akomaye Agim disagreed with the majority stance and held in a substantive ruling that the Federal Government’s action breached constitutional provisions.
