Supreme Court dismisses Osun Govt’s suit on withheld LG funds

The Supreme Court has struck out a case filed by the Osun State Attorney General, Oluwole Jimi-Bada, challenging the Federal Government’s withholding of statutory allocations meant for the state’s 30 local government councils.
In a 6–1 majority judgment, the apex court ruled that the Osun Attorney General lacked the legal authority to file the suit on behalf of the councils.
Delivering the lead judgment, Justice Mohammed Idris held that only duly elected and inaugurated local government chairmen, not the state Attorney General have the legal personality to initiate or defend actions involving their councils.
The court stressed that there was no evidence that the councils authorised the Osun Attorney General to sue on their behalf, rendering the action incompetent.
Despite striking out the case on technical grounds, the Supreme Court faulted the Federal Government’s conduct, declaring that the withholding of local government allocations violated the 1999 Constitution.
Justice Idris said the Federal Government acted improperly and urged it to ensure that funds are paid directly into the accounts of the local councils, in line with constitutional provisions on local government autonomy.
The court also dismissed the AGF Lateef Fagbemi’s allegations of contempt against the Osun government, saying the Federal Government itself was in greater violation by failing to release the funds when it should.
In a dissenting judgment, Justice Emmanuel Agim disagreed with the majority, arguing that the Osun Attorney General does have the right to initiate the case.
Justice Agim criticised the Federal Government’s actions as detrimental to grassroots governance, noting that withholding local government funds “cripples council administration” and undermines constitutional responsibilities.



