Supreme Court Strikes Out Osun Suit on Withheld LG Funds Over Jurisdiction

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The Supreme Court has struck out a suit filed by the Osun State Attorney General against the Attorney General of the Federation (AGF) over the withholding of local government allocations due to the state.

Mediaplusng.com reports that in a split decision of six justices to one, the Apex Court ruled that the Osun Attorney General and Commissioner for Justice lacks the legal right to file the case on behalf of the 30 local government areas. The court held that only democratically elected and inaugurated local government officials have the authority to sue or be sued directly in such matters.

Reading the lead judgment, Justice Mohammed Idris held that the Federal Government acted wrongly by withholding the local government funds, stressing that the action violates the provisions of the 1999 Constitution. Mediaplusng.com notes that the court criticised the Federal Government for “soiling its hands” by seizing funds unjustly and warned that allocations must be released directly to local government accounts as required by law.

The court also dismissed the AGF’s contempt claims against Osun State, stating that the AGF was in greater contempt for failing to release the statutory funds. However, Justice Idris ruled that the Osun Attorney General should not have filed the suit since there was no evidence that the local government councils authorised him.

In a strong minority judgment, Justice Emmanuel Agim disagreed with the six justices, insisting that the Osun Attorney General has the locus standi to institute the case. He added that withholding local government funds is harmful to governance and capable of crippling council operations.

The ruling marks a significant moment in the ongoing national debate about financial autonomy for local governments.

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