Supreme Court Dismisses Osun’s Suit On Withheld LG Allocations, Faults FG For Not Enforcing Direct Funding

The Supreme Court has struck out a suit filed by the Osun State Government seeking to compel the Federal Government to release statutory allocations directly to Local Governments in the state.

In a 6–1 majority judgment delivered on Friday by Justice Mohammed Idris, the apex court held that the Osun Attorney General lacked the locus standi to institute the case. The court affirmed that Local Governments are legally recognized entities with the capacity to sue and must initiate such actions themselves.

Justice Idris ruled that the plaintiff failed to establish any dispute capable of invoking the Supreme Court’s original jurisdiction under Section 232(1) of the Constitution. He noted that the matter strictly concerned alleged withholding of funds meant for Osun Local Governments from the Federation Account, not a dispute between the state and the Federal Government.

While distinguishing the case from the landmark AG Abia & Others v. AG Federation, where the Supreme Court ordered the direct release of LG allocations nationwide, Justice Idris clarified that only affected Local Governments—not state governments—can bring such actions before the court.

However, the Justice criticized the Federal Government for failing to fully implement that earlier judgment, stressing that Abuja is under a constitutional obligation to ensure that all Local Government funds are transferred directly to the councils without interference or delay.

Justice Emmanuel Agim issued the lone dissenting judgment, disagreeing with the majority’s interpretation and conclusions.