In a significant ruling, the Supreme Court of Nigeria has dismissed a lawsuit filed by the Osun State Government aimed at compelling the Federal Government to release statutory allocations meant for Local Government Areas in the state.
Court Rules Osun AG Lacks Legal Standing
The apex court delivered a majority judgment on Friday, 5th December 2025, with six justices against one. The lead judgment, prepared and read by Justice Mohammed Idris, held that the Attorney General of Osun State lacked the locus standi—the legal right—to institute the case on behalf of the Local Governments.
Justice Idris stated that the Local Governments, being separate legal entities with the capacity to sue, should have filed the action themselves. He further ruled that the plaintiff failed to establish a cause of action that could invoke the Supreme Court's original jurisdiction under Section 232(1) of the Constitution.
Distinction from Previous Landmark Ruling
The court clarified that this case differed from the landmark judgment in AG, Abia and others v. AG of the Federation. In that earlier case, the Supreme Court had ordered the direct payment of allocations to Local Governments across the federation. Justice Idris emphasized that a suit concerning withheld funds should be filed by the affected councils directly, not by a state government.
However, the court did not spare the Federal Government from criticism. Justice Idris openly frowned at the FG's failure to implement all necessary measures to enforce the direct payment mandate established in the Abia case. He reiterated that the Federal Government is obligated to ensure that all funds credited to LGs in the Federation Account are sent directly to them without any excuses for withholding.
A Lone Voice of Dissent
Justice Emmanuel Agim provided the sole dissenting opinion on the seven-member panel. He disagreed with his colleagues, arguing that the Osun Attorney General indeed had the right to bring the case. Justice Agim condemned the Federal Government's action of withholding the funds, stating it was in bad taste and capable of crippling the essential activities of the Local Government Councils.
The dismissal of this suit leaves the Osun State Local Governments to pursue their legal rights independently if they choose to challenge the non-release of their funds from the Federation Account.
