The Supreme Court on Friday declared the Federal Government’s withholding of Osun state local government funds unconstitutional, while dismissing the suit filed by the State Government on technical grounds.
The apex court, in a split decision of six to one, struck out the case instituted by the Attorney-General of Osun State, ruling that he lacked the legal standing (locus standi) to sue on behalf of the state’s 30 local government councils.
Justice Mohammed Idris, who delivered the lead judgment, held that only duly elected and inaugurated local government officials have the authority to initiate legal action concerning their finances and administration.
The court found no evidence that the Osun Attorney-General was formally authorized by the councils to file the suit.
However, the Supreme Court strongly condemned the Federal Government’s action, describing the withholding of funds allocated to local governments as a “grave breach” of the 1999 Constitution and a violation of its earlier judgment affirming local government financial autonomy.
Justice Idris stated that the Federal Government’s hands were “soiled” by the illegal seizure of the funds and urged immediate compliance with constitutional provisions requiring direct allocation to local government accounts.
The court also dismissed contempt allegations raised by the Attorney-General of the Federation against Osun State, noting that the Federal Government itself was in greater contempt for failing to release the funds as mandated.
In a dissenting opinion, Justice Emmanuel Agim held that the Osun Attorney-General was entitled to bring the suit and warned that withholding local government funds could cripple governance at the grassroots level nationwide.
The ruling establishes a firm constitutional precedent against the federal withholding of local government allocations, though it leaves the specific claim by Osun State councils unresolved due to procedural limitations.
