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Supreme Court Strikes Out Osun AG’s Suit On Withholding Of LG Funds

Supreme Court Strikes Out Osun AG’s Suit On Withholding Of LG Funds
  • PublishedDecember 5, 2025

The Supreme Court of Nigeria has struck out the case instituted by the Attorney General of Osun State on the withholding of the state’s local government funds by the office of the Attorney General of the Federation.

In its lead judgement on Friday, the court ruled that the Osun AGF lacked locus standi to institute the matter, since local governments are empowered by law to sue and seek redress in court on any matter.

Justice Muhammad Baba Idris, who read the lead judgement said: “The Attorney-General of Osun state lacks locus standi to institute this case on behalf of local government councils that have exclusive powers to sue.

“If any entity has grievances on the non-release of the local government funds, it should be local government councils and not the state. The local government has right to sue and be sued as provided by the constitution.

“On the ground, the plaintif case is hereby dismissed and it is struck out,” the court ruled.

The apex court also affirmed its July 2025 verdict on the financial autonomy of local government areas, asserting that funds belonging to council areas must go to them directly without interference.

“The federal government cannot interfere in the affairs of the state and states can not interfere in the affairs of the local government. The local government have authority to conduct their affairs without interference of the state.

“The judgement of this court that allocations of the local government remains valid and must be enforced.”

In his dissenting judgement, however, Justice Emmanuel Akomaye said the suit is meritorious.

He read, “This suit is a public action and the AG of Osun acted in good faith. The suit is valid and the AG Osun state has locus standi to file the suit.

“The preliminary objection of the defendant is hereby dismissed.”

Six of the seven justices who presided over the matter consented to the lead judgement.