Osun State Government Drags FG to Supreme Court Over Withheld LGA Allocations
Osun State has dragged the Federal Government to the Supreme Court over withheld council allocations.
The state demands immediate release of funds, accusing the AGF of unconstitutional interference in finances.
The Osun State Government has filed a fresh suit at the Supreme Court against the Federal Government, accusing it of unlawfully withholding statutory allocations due to the state’s 30 local government councils since March 2025.
The suit, lodged on Monday, was filed against the Attorney-General of the Federation (AGF), Lateef Fagbemi (SAN), with Osun represented by its Attorney-General alongside a legal team led by Mike Ozekhome (SAN) and Musibau Adetunbi (SAN).
Osun is asking the apex court to order the immediate release of the seized funds and to declare the AGF’s actions unconstitutional. The state described the seizure as an “arbitrary and unlawful interference” with the financial autonomy of its councils.
The dispute stems from a March 26, 2025, directive by the AGF, who cited a “local government crisis” in Osun as grounds for withholding allocations. However, the state insists that judgments of the Federal High Court (November 30, 2022) and the Court of Appeal (June 13, 2025) had already resolved the matter by nullifying the 2022 local government elections conducted under the previous administration.
In its reliefs, Osun is asking the Supreme Court to declare that the AGF:
- Lacks constitutional authority to withhold local government funds.
- Has violated Section 287 of the 1999 Constitution (as amended) by disregarding valid court judgments.
- Should be permanently restrained from further interference in local government revenues.
Supporting the suit, Olufemi Akande Ogundun, Permanent Secretary of the Ministry of Local Government and Chieftaincy Affairs, described the Federal Government’s stance as “an affront to the rule of law.” He stressed that only the Supreme Court can conclusively settle the constitutional questions, citing precedents such as A.G. Kano State v. A.G. Federation (2007) and RMAFC v. A.G. Rivers State (2023).
Osun also raised concerns over the transfer of a related case from the Federal High Court in Osogbo to Abuja, warning that it could result in conflicting judgments.