The Supreme Court has struck out a suit filed by the Osun State Government challenging the federal government’s withholding of statutory allocations meant for its 30 local government councils since March 2025.
In a 6–1 split decision, the court ruled that the Osun State Attorney General lacked the legal authority to sue on behalf of the councils, noting that only the elected chairmen are the rightful juristic persons to institute such action.
The panel, however, held that the federal government has no constitutional power to withhold local government funds, describing its actions as unlawful. It also dismissed the FG’s contempt charge against Osun, saying the federal government was in deep contempt for failing to release the funds.
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In a dissenting judgement, Justice Emmanuel Agim maintained that the FG’s actions clearly breached the constitution.
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