Court Sets September 22 for Hearing on Osun Local Government Funds Dispute

By Ademola Adekusibe | September 8, 2025

The Federal High Court has scheduled September 22, 2025, to hear applications in the ongoing legal battle between Osun State and the Federal Government over withheld local government allocations.

The case, filed by the Osun State Government, challenges the Attorney General of the Federation (AGF) and the Central Bank of Nigeria (CBN) over the alleged unlawful withholding of statutory allocations meant for the state’s 30 local government councils since March 2025.

The Osun State Government argues that the AGF’s action violates existing court judgments, including a November 2022 Federal High Court ruling and a June 2025 Court of Appeal decision, both affirming the legitimacy of local government officials elected in February 2025. The state is seeking a Supreme Court order compelling the release of all withheld funds and a declaration that the AGF lacks the constitutional authority to withhold such allocations.

Meanwhile, the Nigerian Union of Local Government Employees (NULGE) has raised concerns that the AGF may be preparing to divert the withheld funds to accounts associated with sacked All Progressives Congress (APC) officials. NULGE described such a move as unconstitutional and a violation of court orders.

As the legal proceedings continue, the Osun State Government has urged the judiciary to expedite the resolution of the matter to ensure proper administration of local government funds and uphold the rule of law.