The Supreme Court of Nigeria has reserved judgment in a legal battle between the Osun State Government and the Attorney General of the Federation (AGF) over the release of local government allocations allegedly diverted to sacked council officials.
seven-member panel led by Justice Uwani Aba’aji announced the decision on Tuesday after hearing final arguments from both parties. The date for the judgment will be communicated later.
The Osun State Government, through its Attorney General Musbau Adetumbi (SAN), is seeking a series of declarations and orders compelling the AGF to release monthly allocations owed to the state’s 30 local government councils since March 2025.
Osun argues that the AGF acted illegally by directing that the funds be paid to former APC chairmen and councillors removed from office following court rulings that nullified their October 2022 election. The state maintains that democratically elected officials from the February 2025 LG polls are the only lawful recipients.
Adetumbi alleged that despite the pending case, the AGF attempted to disburse the funds through the Central Bank of Nigeria, a move stopped by a court order. He urged the Supreme Court to grant all reliefs sought and restrain the AGF from further interference.
However, AGF’s counsel Chief Akin Olujimi (SAN) asked the court to dismiss the suit, calling it an abuse of judicial process. He argued that the dispute is a political tussle between the APC and PDP over local council control and is already before several lower courts. Olujimi further claimed that Osun lacked the legal standing to bring the case and accused the state of contempt of court.
The apex court also struck out an earlier suit (SC/379/2025) filed by Osun before the AGF issued his payment directive.
The outcome of the case, when delivered, will determine the fate of billions in federal allocations and could set a significant precedent on federal-state relations and local government autonomy in Nigeria.
