Court Sets September 29 for Hearing on Osun LG Funds Dispute

Justice Emeka Nwite of the Federal High Court, Abuja, has fixed September 29, 2025, to hear the Osun State Government’s motion challenging the court’s jurisdiction in the case over withheld local government (LG) funds.

The case, which has sparked legal and political tension in Osun, pits the state government against federal agencies over the control and disbursement of LG allocations, with significant implications for the tenure of elected chairmen and councillors.

Jurisdiction Challenge and Disputed Letter

At Monday’s sitting, counsel for the Osun State Government, Musibau Adetunbi (SAN), argued that since the Federal High Court’s vacation period ended on September 16, the case should be transferred back to its Osogbo Division for proper hearing. He maintained that the Abuja Division’s authority to preside over the matter expired alongside the court’s vacation.

The senior lawyer also challenged a letter purportedly from the Chief Judge’s office, authorising Justice Nwite to determine the case in Abuja. He questioned the letter’s legitimacy, pointing out that it was signed by “the Personal Assistant to the Personal Assistant of the Chief Judge,” a person he described as “unknown to law” and without proper authority to issue such a directive.

Adetunbi urged the court to first rule on the validity of the letter before entertaining arguments on the substantive matter, stressing that the integrity of the judicial process must be preserved.

However, counsels representing the Central Bank of Nigeria (CBN) and the Accountant General of the Federation, Muritala Abdulrasheed (SAN) and Tajudeen Oladoja (SAN), opposed the motion. They accused the Osun government of attempting to stall proceedings until after the tenure of the elected APC council officials expires on October 22. Both lawyers warned that any delay would render the case “academic” and frustrate justice for the parties involved.

Stakes for Local Governance

The suit, filed by Osun Attorney General Oluwole Jimi-Bada, seeks to restrain the CBN and the Accountant General from opening or maintaining accounts for the APC chairmen elected in the October 2022 LG elections. The Osun government maintains that the chairmen were removed from office following a Federal High Court judgment, a decision that was later upheld by the Court of Appeal.

According to the state, continuing to disburse LG allocations to the sacked chairmen would amount to disregarding judicial pronouncements and undermining its authority. The government is also seeking an interim injunction to halt the release of funds to the disputed officials until the matter is resolved.

In an earlier ruling, Justice Nwite struck out the name of the Attorney General of the Federation (AGF) as a defendant after the plaintiff discontinued its claims against him. Counsel for the Osun government explained that the AGF is already a party to a similar case currently pending before the Supreme Court, and pursuing two concurrent actions would be unnecessary.

The outcome of the September 29 hearing will determine whether the Abuja court retains jurisdiction to hear the matter or whether it will be transferred back to Osogbo for a fresh start. Legal analysts say the decision could set a precedent for how jurisdictional disputes are handled when federal and state interests collide, particularly in cases involving LG autonomy and fund management.

As the clock ticks toward the expiration of the APC chairmen’s tenure, stakeholders are watching closely to see whether the court will prioritise a speedy resolution or uphold the Osun government’s jurisdictional challenge, a decision that could shape the control of grassroots governance in the state.

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