Abuja: The Supreme Court has reserved its judgment in a case brought by the Osun Government against the Attorney-General of the Federation, Lateef Fagbemi (SAN), over the withholding of statutory allocations for its 30 local government councils. The apex court’s decision came after hearing arguments from Mr. Musbau Adetunbi, SAN, representing the Osun Government, and Chief Akin Olujimi, SAN, representing the Attorney-General of the Federation (AGF).
According to News Agency of Nigeria, Justice Uwani Aba-Aji, who led the seven-member panel of justices hearing the matter, stated that the date for delivering the judgment will be communicated to all parties involved. The Osun Government initiated the lawsuit against the AGF over the withholding of its statutory allocations since March 2025. Adetunbi, the counsel for the state, indicated that the government had submitted 10 reliefs, 11 grounds, and an affidavit comprising 35 paragraphs.
The state is seeking a ruling from the Supreme Court to compel the Federal Government to release the seized funds and halt what it terms the ‘unconstitutional and arbitrary seizure’ of local government revenues. The AGF had allegedly disregarded judgments from the Federal High Court, Osogbo, and the Court of Appeal, which affirmed the legitimacy of council officials elected on February 22. The AGF, in a letter dated March 26, 2025, had advised withholding the funds pending resolution of a local government crisis.
The Osun Government claims the appellate court ruling had already settled the matter, overturning the October 2022 elections conducted by the previous administration. Among the reliefs sought is a declaration that the AGF lacks the constitutional authority to withhold local government funds and that such actions contravene valid court judgments. The state also demands that all withheld allocations be directly deposited into the accounts of the duly elected councils, along with a perpetual injunction against future seizures.
The state questioned whether the AGF is constitutionally obliged under Section 287 of the 1999 Constitution to enforce the rulings of the Federal High Court and the Court of Appeal, and whether his directive to withhold funds can stand in light of the appellate judgment. The state concurrently filed another suit at the Federal High Court, Osogbo, contesting the Chief Judge’s decision to transfer an earlier case on the same issue from Osogbo to Abuja.
The Osun Government asserts that proceeding with the case in Abuja while the Supreme Court is deliberating could lead to conflicting judgments. It criticized the Federal Government’s actions as undermining the rule of law, asserting that only the Supreme Court can resolve the constitutional issues conclusively. The state referenced precedents such as A.G. Kano State v. A.G. Federation (2007) and RMAFC v. A.G. Rivers State (2023).
The state also accused the AGF of delaying responses to originating processes for over 80 days before filing an urgency affidavit, which it described as ‘self-induced urgency.’ It contended that the Chief Judge’s transfer order could create a perception of bias. Furthermore, the state argued that the AGF was incorrect in recognizing APC Local Government chairmen while the matter was still pending in court, citing that the election of APC officials had been nullified by both a Federal High Court and upheld by the Court of Appeal.
In response, the AGF, represented by Akin Olujimi SAN, raised a preliminary objection, urging the Supreme Court to dismiss the plaintiff’s case on various grounds, including the claim that the plaintiff lacked the legal standing to bring the case before the Supreme Court, as it is a matter between two political parties.