Osun LG crisis: Supreme Court reserves judgment in suit against AGF over withheld funds

The Supreme Court on Tuesday reserved judgment in a suit filed by the Osun State Government seeking to stop the Attorney General of the Federation (AGF) from releasing withheld local government funds to “court-sacked” council chairmen elected on the platform of the All Progressives Congress (APC).

A seven-man panel of justices led by Justice Uwani Aba’aji took arguments from Musbau Adetumbi, SAN, representing the Osun State Attorney General, and Chief Akin Olujimi, SAN, who appeared for the AGF, before announcing that judgment would be delivered on a date to be communicated to parties.

A highlight of Tuesday’s proceedings was the apex court’s acknowledgment of an interim order issued last week by an Ibadan High Court, restraining the United Bank for Africa (UBA) from disbursing allocations to the sacked APC council officials.

Adetumbi had drawn the attention of the court to alleged attempts to tamper with the res (subject matter) of the suit, but Justice Aba’aji noted that the High Court’s intervention had effectively preserved the funds, saying: “It is no issue again.”

The arguments

Presenting Osun State’s case, Adetumbi urged the court to order the AGF to release statutory allocations to “validly elected” local government chairmen and councillors, and to stop further withholding of funds due to the state’s 30 councils. He argued that the AGF acted wrongly by issuing a letter recognising APC chairmen despite subsisting judgments nullifying their election.

The elections conducted in 2022 by former governor Gboyega Oyetola had been nullified by a Federal High Court and later upheld by the Court of Appeal, paving the way for Governor Ademola Adeleke to dissolve the APC-led councils and appoint caretaker committees.

But the AGF subsequently wrote to recognise the sacked officials, prompting the Osun government to invoke the Supreme Court’s original jurisdiction.

Opposing the suit, Olujimi argued that the Osun Attorney General lacked locus standi to bring the case, insisting it was a political dispute between two parties rather than a constitutional issue. He said the apex court lacked jurisdiction, and that the suit disclosed no reasonable cause of action.

He also maintained that the tenure of the APC chairmen would not lapse until October 22, and therefore they were still entitled to statutory allocations. Olujimi further accused the Osun government of abuse of court process, alleging multiple suits had been filed in different courts on the same matter.

He urged the Supreme Court to dismiss the case outright.

Background of the dispute

The local government crisis in Osun stems from controversial elections conducted by the Oyetola administration shortly before leaving office. The polls, swept by APC candidates, were challenged by the Peoples Democratic Party (PDP), which argued they violated the Electoral Act and due process.

The courts later nullified the elections, a ruling upheld on appeal. Governor Adeleke then replaced the APC councils with caretaker committees. The AGF’s recognition of the ousted officials reignited the row, leading to the current legal battle at the Supreme Court over who is entitled to receive Osun’s monthly allocations.

The apex court’s ruling in the case, marked SC/CV/773/2025, is now awaited.