Supreme Court Reserves Judgment In Osun’s Suit Over Withheld LG Funds

A seven-member panel of the Supreme Court of Nigeria on Tuesday reserved judgment in a suit filed by the Osun State Government against the Attorney General of the Federation (AGF) over the alleged withholding of local government funds belonging to the state.
The panel, led by Justice Uwani Aba’aji, reached the decision after hearing arguments from counsel representing both parties — Musbau Adetumbi (SAN) for Osun State and Chief Akin Olujimi (SAN) for the AGF.
Justice Aba’aji stated that the date for the judgment would be communicated to the parties in due course.
The case, marked SC/CV/773/2025, seeks to compel the AGF to release funds allegedly withheld and directed to be paid to local government chairmen elected on the platform of the All Progressives Congress (APC), whose elections had been nullified by the courts.
In the suit, Osun State — represented by its Attorney General — asked the apex court to grant ten separate reliefs, including declarations affirming the AGF’s constitutional duty to comply with earlier judgments of the Federal High Court and the Court of Appeal.
The state cited rulings delivered on November 30, 2022 (Suit No. FHC/OS/CS/103/2022), and June 13, 2025 (Appeal No. CA/AK/15/2025), which upheld the existence of democratically elected local government councils in Osun following elections held on February 22, 2025.
Osun further argued that the AGF had no authority to “act arbitrarily” by diverting or withholding statutory allocations meant for the 30 local government councils, nor could he “constitute himself into a court” to override existing judicial decisions.
The state also sought a declaration that the AGF’s alleged withholding of local government allocations since March 2025 was unconstitutional, unlawful, and beyond his powers.



