The Supreme Court is scheduled to deliver judgment on Tuesday, October 14, 2025, in the ongoing legal battle between the Osun State Government and the Federal Government over the release of local government funds.
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The dispute stems from Osun State’s challenge to the Federal Government’s decision to withhold funds meant for council chairmen elected under the All Progressives Congress (APC) in the October 2022 local government elections. The PDP-led state government has questioned the legitimacy of these elections, citing alleged irregularities.
Conflicting rulings in lower courts created a constitutional dilemma over who holds authority over the local councils. In response, the Federal Government, through the Attorney-General of the Federation (AGF) and the Central Bank of Nigeria (CBN), withheld the funds, with Osun State claiming that the AGF intended to release the money directly to disputed APC chairmen.
Osun State filed a suit at the Supreme Court seeking to restrain the AGF from disbursing funds to what it called “illegitimate” council officials. The state’s Attorney-General, represented by Musbau Adetumbi (SAN), argued that the AGF must respect earlier court rulings affirming the PDP’s position. Meanwhile, the AGF, represented by Akin Olujimi (SAN), maintained that the APC chairmen were democratically elected and entitled to the allocations.
Ahead of the Supreme Court ruling, the Oyo State High Court in Ibadan extended an interim injunction on United Bank for Africa (UBA) accounts holding the withheld local government allocations. Justice Ladiran Akintola explained that the extension was necessary to ensure a fair hearing for all parties, including the Attorney-General of Osun State, the Local Government Service Commission, and UBA Plc.
Counsel for the court-sacked APC council chairmen, led by Kazeem Gbadamosi, SAN, filed applications for joinder and jurisdictional challenge. Adetumbi, representing the plaintiffs, insisted that the ex-APC council chairmen lacked locus standi and were “strangers to the case” pending court decisions on their applications.
Additional affidavits, including one from Mrs. Aluko Rachael Abidemi, Head of Local Government Administration in Boluwaduro LGA, highlighted alleged attempts to siphon funds despite a subsisting court order.
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