…Dismiss Osun’s suit
The Federal Government has urged the Supreme Court to dismiss a suit filed by the Osun State Government over the release of local government (LG) allocations, insisting that no State has the right to control or spend funds meant for LGs.
In its response to the case (Suit No: SC/CV/379/2025), the FG argued that Osun’s request to access LG funds for health and education violates the Supreme Court’s July 2024 ruling, which mandates direct payment of LG allocations from the Federation Account to elected councils.
In an affidavit by Taiye Hussain Oloyede, Special Assistant to the President (Ministry of Justice), the FG said Osun lacks legal standing to initiate the suit. It emphasized that only LG councils—not state governments—have the right to these funds and the authority to seek redress if funds are withheld.
The FG accused Osun of seeking to override the Supreme Court’s ruling by asking that LG funds be paid to the state government. It added that Osun had already admitted to collecting LG allocations from July 2024 to February 2025, which it claims is in violation of the court’s order.
The Government also noted that the current LG officials in Osun were elected under the previous administration and remain in office until October 2025. It said there’s no evidence that these councils authorized the state to act on their behalf or that they submitted account details to the Minister of Finance for direct payment.
In a written address, FG’s lead counsel, Akin Olujinmi (SAN), described Osun’s demands as deceptive and contrary to law. He argued that the suit does not qualify for the Supreme Court’s original jurisdiction, as there’s no legal dispute between the Federation and Osun State.
Meanwhile, Osun is asking the court to compel the FG to release the withheld funds and prevent further delays. In a supporting affidavit, the state’s Commissioner for Finance, Ogungbile Adeola Olusola, warned that continued non-payment threatens vital services like education and healthcare and could par.
