Supreme Court Strikes Out Osun’s Suit, Says Tinubu Govt Lacks Power to Withhold LGA Funds
The Supreme Court of Nigeria has struck out a suit filed by the Osun State Attorney General challenging the alleged withholding of statutory allocations meant for the state’s 30 local government areas.
In a decision delivered by a panel of seven justices, the apex court held that the Osun Attorney General, Oluwole Jimi-Bada, lacked the legal standing to institute the action on behalf of democratically elected local government chairmen.
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Ejes Gist News reports that the court’s ruling centred on jurisdiction and the proper party entitled to sue in disputes relating to local government autonomy and financial allocations.
Supreme Court Faults Withholding of Funds but Dismisses Suit
The lead judgment, read by Justice Mohammed Idris, noted that although the Federal Government acted outside the provisions of the 1999 Constitution by withholding funds belonging to local governments, the case filed by Osun State could not be entertained because it was not instituted by the appropriate authorities.
The court held that elected local government officials, not a state attorney general, are the rightful parties to directly seek legal redress when their allocations are withheld.
Justice Idris stated that the move by the Federal Government to seize or reroute local government funds was unconstitutional, adding that the constitutional guarantee for local government autonomy is clear and binding.
He emphasised that the funds should be paid directly into local government accounts, not held or controlled at the federal level in breach of constitutional provisions.
Court Dismisses Contempt Claim Against Osun
In its ruling, the apex court also dismissed contempt proceedings initiated by the Attorney General of the Federation, Lateef Fagbemi, against Osun State. The court held that the AGF could not sustain the contempt allegations because the Federal Government itself had failed to comply with constitutional requirements regarding the disbursement of local government funds.
Justice Idris noted that the AGF was in “greater contempt” by not ensuring that constitutionally due allocations were released to the councils.
The judgment further held that there was no evidence showing that the Osun Attorney General received formal authorization from the state’s elected local government chairmen to file the suit on their behalf.
Minority Judgment Supports Osun Attorney General
Justice Emmanuel Agim delivered a minority judgment disagreeing with the six other justices. He held that the Osun Attorney General retained the constitutional right to sue to protect the interests of the state and its local government administrations.
Justice Agim criticised the withholding of local government funds by the Federal Government, describing the practice as detrimental to grassroots governance and capable of crippling administrative activities at the local level.
Local Government Autonomy Continues to Generate National Debate
The judgment adds a new dimension to the ongoing national debate regarding local government autonomy and the powers of the Federal Government over statutory allocations.
While the Supreme Court affirmed that the Federal Government has no constitutional authority to seize or divert funds meant for local councils, the dismissal of the Osun suit on technical grounds means the local governments must personally institute fresh legal action if they wish to enforce their claims.
State governments and local government associations across Nigeria are expected to study the judgment closely as it may shape future legal and political engagements on fiscal federalism.
