Supreme Court Rules Osun State Cannot Sue Over Withheld LG Funds

The Supreme Court on Friday struck out a suit filed by the Attorney General of Osun State challenging the federal government’s withholding of allocations meant for the state’s 30 local government councils.

In a split decision of six justices to one, the apex court ruled that the Osun State Attorney General and Commissioner for Justice did not have the legal authority to institute the case on behalf of the local governments.

Justice Mohammed Baba Idris, who read the lead judgment, said only duly elected and inaugurated local government officials have the jurisdiction to sue or be sued directly.

While the court acknowledged that the federal government erred by withholding the funds—a violation of the 1999 Constitution—Justice Idris noted that the state government lacked evidence that the local governments had authorized the suit.

The court also dismissed the Attorney General of the Federation’s contempt claims against Osun State, stating that the federal government, by withholding the funds, was in greater contempt of the law.

In a lone dissenting judgment, Justice Emmanuel Akomaye Agim argued that the Osun State Attorney General had the right to bring the suit and condemned the federal government’s action as capable of crippling the councils’ operations.

The ruling reinforces the principle that local government funds must be channeled directly to councils, bypassing state authorities, to ensure transparency and prompt disbursement.