Osun LG Funds: Supreme Court Strikes Out Suit On Withheld Funds Over Jurisdiction

The Supreme Court of Nigeria has struck out a suit filed by the Attorney General of Osun State, Oluwole Jimi-Bada, against the Attorney General of the Federation (AGF), Lateef Fagbemi, in relation to the dispute over the withheld allocations due to local governments in the state.

In a split decision of six justices to one, the apex court held that the Osun State Attorney General and Commissioner for Justice has no legal right to have instituted the case on behalf of the 30 local governments in the state.

The court held that those who won the local government election and were inaugurated are the right persons who can sue and be sued directly.

Justice Mohammed Idris, who read the lead judgment, held that the Federal Government was wrong in withholding the local government fund, adding that the action was in breach of the 1999 Constitution.

The Supreme Court ruled that the Federal Government improperly seized funds and urged it to ensure that the funds are directly allocated to local accounts.

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The court dismissed the AGF’s contempt allegations against Osun, adding that he was in more contempt than Osun by not paying the fund as required by law.

Justice Idris, however, said that since there was no evidence that the Osun Attorney General was briefed by the local governments, he ought not to have filed the case on their behalf.

In a minority judgment, Justice Emmanuel Agim disagreed with the six other justices, holding that the Osun Attorney General has the right to institute the case.

Justice Agim said that the action of the federal government in withholding the local governments’ funds was in bad taste because it was capable of crippling the activities of the councils.