The Supreme Court has struck out a suit instituted by the Osun State Government seeking to compel the Federal Government to release funds allegedly withheld from the state’s Local Government Areas.
In a majority decision of six to one, the apex court ruled that the Osun State Attorney General lacked the legal capacity to initiate the action on behalf of the LGAs, which are independent entities capable of suing to protect their interests. The lead judgment was delivered on Friday by Justice Mohammed Idris.
Justice Idris held that the state government failed to demonstrate any dispute between it and the Federal Government that could trigger the Supreme Court’s original jurisdiction under Section 232(1) of the Constitution.
According to him, “The plaintiff has not established any cause of action that properly invokes this court’s original jurisdiction.
The issue raised concerns alleged non-release of funds due to Local Governments in Osun State, and the proper parties to approach the court are the Local Governments themselves.”
The court distinguished the matter from the earlier landmark case — AG Abia & Others v. AG Federation — in which the Supreme Court ordered the direct disbursement of Local Government allocations nationwide.
Justice Idris clarified that the Osun State Government could not rely on that judgment to substitute itself for the LGAs.
However, Justice Idris expressed displeasure over the Federal Government’s failure to fully implement the court’s earlier directive mandating direct payments to Local Governments nationwide.
He stated, “The Federal Government is under obligation to ensure that all funds standing to the credit of Local Governments in the Federation Account are released directly to them. This court’s judgment must be given full effect.”
Justice Emmanuel Agim delivered a dissenting judgment, disagreeing with the majority’s position and suggesting that the case should have been entertained.
The matter was filed by the Osun Attorney General following allegations that the Federal Government withheld allocations meant for Local Governments in the state.
