The Supreme Court on Friday dismissed a suit filed by the Attorney General of Osun State seeking to compel the Federal Government to release withheld local government allocations, even as it delivered a stinging rebuke to the Federal Government for violating the constitution.
In a split judgment of six to one, the apex court held that the Osun State Attorney General had no legal capacity to sue on behalf of the 30 local government councils. The court ruled that only democratically elected and properly inaugurated local government officials can institute such an action. The decision effectively struck out the suit marked SC/CV/775/2025, in which Osun had sought ten reliefs, including an order compelling the Attorney General of the Federation to obey earlier court rulings affirming the election of council officials held on February 22, 2025.
Despite striking out the case, the Supreme Court delivered a pointed condemnation of the Federal Government’s actions. In the lead judgment, Justice Mohammed Idris described the withholding of local government funds as a “grave breach” of the 1999 Constitution and its recent landmark decision granting full financial autonomy to local councils. He stated that the Federal Government’s hands were “soiled” by the unlawful seizure of funds and warned that allocations must be paid directly into the accounts of local governments in accordance with constitutional provisions.
Justice Idris also dismissed contempt allegations filed by the Attorney General of the Federation against Osun State, turning the accusation back on the Federal Government. He ruled that the FG itself was in the greater contempt for failing to release the funds as required by law. The justice further held that the Osun Attorney General acted improperly by bringing the suit without proof that he had been formally instructed by the local government councils.
In a dissenting judgment, Justice Emmanuel Agim disagreed with the majority, insisting that the Osun Attorney General did in fact have the authority to file the suit. He strongly criticized the Federal Government’s withholding of funds, warning that the practice was capable of crippling local governance and undermining democracy at the grassroots.
The decision, while procedurally unfavourable to Osun State, reinforces the constitutional principle of local government autonomy and underscores the illegality of federal interference in statutory allocations, setting the stage for further legal and political battles over the country’s troubled federal structure.
