In a split decision of six justices to one, the Supreme Court on Friday struck out a suit filed by the Attorney General of Osun State against the Attorney General of the Federation (AGF) over the withholding of statutory allocations meant for the state’s 30 local government areas.
The apex court held that the Osun State Attorney General and Commissioner for Justice lacked the legal standing to institute the action on behalf of the local government councils.
According to the court, only the elected and inaugurated local government officials—“the jurisdict persons that can sue and be sued”—possess the lawful right to challenge the action in court.
Despite striking out the suit, the Supreme Court strongly criticized the Federal Government, ruling that withholding the funds was unconstitutional and amounted to a “grave breach” of the 1999 Constitution.
Delivering the lead judgment, Justice Mohammed Baba Idris warned that the Federal Government “soiled its hands” by unjustly seizing funds due to the councils, and directed that allocations must be remitted directly to local government accounts in line with constitutional provisions.
The court also dismissed the AGF’s contempt allegations against Osun State, ruling that the Federal Government was “in greater contempt” for failing to release the funds as required by law.
However, Justice Idris emphasized that the suit was defective, noting that there was no evidence that the Osun State Attorney General had been formally authorized by the councils to litigate on their behalf.
In a lone dissent, Justice Emmanuel Akomaye Agim disagreed with the majority, holding that the Osun State Attorney General had the constitutional right to institute the action.
Justice Agim faulted the Federal Government’s conduct, describing its decision to withhold local government allocations as “in bad taste” and capable of crippling grassroots governance.
