Supreme Court, however, held that the FG was wrong in withholding the LG funds, adding that its action breached the 1999 Constitution.
By Kehinde Okeowo
The Supreme Court has struck out a suit brought by the Osun State Government challenging the Federal Government regarding the release of withheld allocations belonging to local government areas in the state.
The Apex court, on Friday, in a split decision, held that the Osun State Attorney General and Commissioner for Justice has no legal right (locus standi) to have instituted the case on behalf of the 30 local governments in the state.
In the suit, Osun State, who is the plaintiff in the matter, sought an order of the Supreme Court restraining the Attorney General of the Federation (AGF) from paying the statutory allocations standing to the credit of the 30 Local Governments in Osun state to the sacked APC Chairmen and Councillors.
The Osun Attorney General also sought an order of the apex court directing the AGF to immediately release the “monthly allocations and revenues due to and standing to the credit of the Constituent Local Government Councils of Osun state for all the months they have been unlawfully and unjustifiably withheld by the AGF and pay same directly into the Local Government allocation accounts to be opened in favour of the validly elected Local Government Council officials elected on February 22, 2025”.
Besides, the plaintiff who invoked the Supreme Court’s original jurisdiction based on a letter according recognition to the disputed APC Chairmen and Councilors, also sought an order stopping the AGF from further withholding, suspending, or seizing monthly allocations and revenues standing to the credit of the Constituents Local Governments, having democratically elected Chairmen and Councilors in place.
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While delivering its verdict, the court ruled that those who won the local government elections and have been inaugurated are the proper persons who can sue and be sued directly.
The judges, however, held that the Federal Government was wrong in withholding the local government funds, adding that the action was in grave breach of the 1999 Constitution.
Justice Mohammed Baba Idris, who read the lead judgment, said that the hand of the Federal Government was “soiled” in its decision to unjustly seize the funds and admonished it to ensure that the funds are directly channeled to local accounts.
The Court also dismissed the AGF’s contempt allegations against Osun, adding that he was in greater contempt than Osun by not paying the funds as required by law.
Justice Idris, however, said that since there was no evidence that the Osun Attorney General was briefed by the local governments, he ought not to have filed the case on their behalf.
Meanwhile, in a minority judgment, Justice Emmanuel Akomaye Agim disagreed with the six other justices, holding that the Osun Attorney General has the right to institute the case.
He added that the action of the Federal Government in withholding the local government funds was in bad taste because it was capable of crippling the activities of the councils.
