*Holds Osun AG Lacked Locus Standi To Sue On Behalf Of 30 LGCs
In a split decision, the Supreme Court on Friday struck out a suit filed by the Osun State Government seeking to compel the Federal Government to release statutory allocations withheld from the state’s 30 Local Government Councils (LGCs). While the court dismissed the case due to a lack of legal standing, it strongly criticized the Federal Government’s actions as unconstitutional.
A seven-member panel ruled 6–1 that the state’s Attorney-General lacked the locus standi (legal right) to institute the suit on behalf of the autonomous local governments. The lead judgment, delivered by Justice Mohammed Idris (also referenced as Mohammed Baba-Idris in reports), held that the LGCs themselves were the proper parties to challenge the Federal Government, and the Supreme Court could not entertain the case as a court of first instance in this matter.
Despite upholding the preliminary objection from the Attorney-General of the Federation (AGF), Lateef Fagbemi, SAN, the court admonished the Federal Government. Justice Idris declared that withholding the funds was “a clear misuse of power” and “a clear disobedience to the court’s order that funds should be paid only to a democratically elected government.” He counseled that the funds be released directly to the LGCs’ accounts.
The court also dismissed contempt allegations made by the AGF against Osun State, noting that the AGF was “more guilty of contempt” for withholding the allocations in contravention of the law.
The suit (SC/CV/775/2025) is an offshoot of a protracted local government leadership crisis in Osun. The conflict began when Governor Ademola Adeleke (PDP), upon inauguration in November 2022, dissolved APC chairpersons and councillors elected in an October 2022 poll conducted by his predecessor, Adegboyega Oyetola. That election had been challenged and nullified by the courts.
Subsequently, the Adeleke administration held new elections in February 2025, which were swept by the PDP. The AGF declared these elections illegal and directed that monthly allocations be withheld, stating funds would only be released to “elected officials”—a move interpreted as backing the sacked APC officials.
Osun State’s counsel, Musibau Adetunbi, SAN, argued that the AGF had ignored court judgments affirming the legitimacy of the February 2025 elections and had attempted to release funds to the ousted APC officials. He sought orders for the direct release of all withheld funds to the duly elected LGCs.
The AGF’s counsel, Akin Olujimi, SAN, urged the court to dismiss the case, arguing that Osun State lacked standing, that the Supreme Court lacked original jurisdiction, and that the suit was an abuse of process.
Justice Emmanuel Agim delivered a dissenting opinion, ruling that the Osun State Attorney-General had the right to institute the case. He echoed the majority’s sentiment on the illegality of withholding funds, stating it was “capable of crippling the activities of the councils.” Justice Agim was the author of the landmark July 2023 Supreme Court judgment affirming the financial autonomy of all 774 LGCs in Nigeria.
Reacting to the judgment, Osun State’s lawyer, Adetunbi, stated the outcome yielded no victor. “The matter has been struck out… The Lordships refused to exercise jurisdiction… So, the implication is that it’s neither here nor there,” he said.
The ruling leaves the immediate issue of the withheld allocations unresolved on a technicality, while delivering a strong judicial censure of the Federal Government’s conduct. The ball now appears to be in the court of the Osun LGCs or the Federal Government to take the next legal or administrative step.