Supreme Court Strikes Out Osun’s Suit Against FG, Declares Withholding Of LG Funds Unconstitutional

From Victor Osula, Abuja

The Supreme Court, on Friday, struck out a suit instituted by the Attorney General of Osun State against the Attorney General of the Federation (AGF) over the prolonged withholding of statutory allocations meant for the state’s 30 local government councils.

In a split judgement of six to one, the Apex Court held that the Osun State Attorney General lacked the legal standing to file the case on behalf of the local governments.

The majority decision affirmed that only the duly elected and inaugurated local government officials possess the constitutional capacity to sue or be sued in matters relating to their entitlements.

Reading the lead judgement, Justice Mohammed Idris faulted the Federal Government’s action, declaring the withholding of local government funds a “grave breach” of the 1999 Constitution.

According to the court, the Federal Government’s “hand was soiled” in the unilateral decision to seize allocations, and admonished authorities to ensure all funds are henceforth channelled directly to local government accounts in line with constitutional provisions.

The Court also dismissed the contempt allegations raised by the AGF against Osun State, insisting that the Federal Government itself acted in greater contempt by failing to release the funds as stipulated by law.

However, Justice Idris clarified that since there was no evidence showing that the Osun Attorney General had been formally authorised or briefed by the local government councils, he “ought not to have filed the case on their behalf.”

In a dissenting minority judgement, Justice Emmanuel Agim disagreed with the majority justices, maintaining that the Osun Attorney General possessed the right to initiate the action.

Justice Agim, who condemned the Federal Government’s withholding of local government funds, described the act as “capable of crippling the activities of the councils” and inimical to grassroots governance.