The Osun State government has escalated its battle with the Federal Government to Nigeria’s apex court, the Supreme Court, seeking redress over the withholding of statutory financial allocations meant for the state’s 30 local government councils since March. The case, hinging on constitutional interpretations and governance disputes, saw arguments presented before a seven-member panel headed by Justice Uwani Abba Aji, leading to the court reserving judgment.
Representing Osun State, Senior Advocate Musibau Adetunbi accused the Attorney General of the Federation (AGF) of unconstitutionally blocking funds critical for local governance, pushing for declarations that the freeze is unlawful and demanding immediate release of tens of billions of naira withheld. “We urge Your Lordships to uphold our arguments and grant all reliefs sought by our client,” Adetunbi submitted, emphasizing court validations of PDP-led local government outcomes should counter federal objections.
Conversely, Akin Olujimi, SAN, counsel for the AGF, pressed for dismissal, challenging the suit’s propriety. “The Attorney General of Osun state lacks locus standi to institute this action directly at the Supreme Court,” Olujimi contended, doubting the apex court’s jurisdiction and highlighting parallel proceedings in seven High Courts concerning the impounded funds. He referenced impending expiration of disputed council chairmen’s tenure on October 22, suggesting allocations should reach them for administrative continuity.
“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,” Olujimi argued, spotlighting Federal Government reservations tied to electoral legitimacy questions surrounding Osun’s local government polls won by PDP.
Osun State asserts judicial affirmations – via Federal High Court and Court of Appeal – validate the PDP electoral triumphs, countering federal withholding rationale. An Ibadan High Court had intervened with restraints on banks releasing allocations to removed APC officeholders, effectively preserving status quo ante pending Supreme Court determination.
With Justice Abba Aji reserving judgment, stakeholders await the apex court’s ruling potentially impacting local government funding dynamics and intergovernmental fiscal relations in Nigeria.


