The Osun State Government has dragged the Federal Government before the Supreme Court over the alleged unconstitutional withholding of statutory allocations meant for its 30 local government councils.
In a suit marked SC/CV/379/2025 and filed on April 23, 2025, Osun is challenging the directive of the Attorney-General of the Federation (AGF) which stopped the release of funds for February, March, and April. The state fears the May allocation may also be withheld.
The case, filed by a team of senior lawyers led by Mike Ozekhome (SAN) and Musibau Adetunbi (SAN), argues that the AGF acted outside his powers by directing the suspension of funds through a letter dated March 26, 2025, citing disputes over the validity of local government leadership in Osun.
The state maintained that the directive violated subsisting judgments of the Federal High Court in Osogbo (November 30, 2022) and the Court of Appeal (June 13, 2023), which upheld the legitimacy of council officials elected on February 22, 2025.
Osun is asking the apex court to declare that the AGF has no constitutional power to withhold local government allocations where duly elected councils are in place. It is also seeking an order for the immediate release of all withheld funds and a perpetual injunction restraining the Federal Government from future suspensions or seizures of allocations.
On August 25, 2025, the state’s Attorney-General filed a motion for stay of proceedings at the Federal High Court in Osogbo to avoid conflicting rulings while the Supreme Court case is pending.
Officials of Osun’s Ministry of Local Government and Chieftaincy Affairs described the withholding of funds as an affront to constitutional democracy and the rule of law, stressing that only the Supreme Court can resolve the matter.
The Nigerian Bar Association (NBA) has also condemned the action, calling it unconstitutional and urging President Bola Tinubu to intervene and direct the immediate release of the funds.
