Osun Drags FG to Supreme Court Over Withheld Local Government Funds
The Osun State Government has taken the Federal Government before the Supreme Court over the withholding of statutory allocations meant for the state’s 30 local councils since March 2025.
In its suit, Osun described the action of the Federal Government as unconstitutional and a direct violation of subsisting court judgments that had already affirmed the legitimacy of the elected local government chairmen and councillors in the state. The government is asking the apex court to compel the release of all withheld funds, ensure they are paid directly into council accounts, and restrain further seizures.
The controversy began after the Attorney-General of the Federation, in a letter dated March 26, 2025, reportedly directed that Osun’s allocations be suspended on account of a “local government crisis.” Osun argues that this instruction has no basis in law.
The Federal Government, however, has denied ordering the seizure. It filed preliminary objections at the Supreme Court, claiming Osun lacks the legal standing to sue on behalf of its councils. It also accused the state of violating a 2024 Supreme Court ruling on local government autonomy and asked that Osun be compelled to refund seven months of allocations already received.
The dispute has drawn reactions from across the country. The Nigerian Bar Association has written to the Attorney-General, describing the withholding as unlawful and urging immediate release of the funds. Traditional rulers in Osun have appealed to President Bola Tinubu to intervene, while the Nigeria Union of Local Government Employees has threatened a nationwide strike if the situation is not resolved.
The case is now before the Supreme Court, with both parties standing their ground. All eyes are on the court to determine whether Osun’s funds will be released and what this ruling could mean for the future of local government administration in Nigeria.
