The Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi (SAN), has asked the Supreme Court to compel the Osun State Government to refund seven months of local government allocations, accusing the state of contempt of court and misappropriation of funds.....KINDLY READ THE FULL STORY HERE▶

According to reports, Fagbemi’s request was contained in a counter‑affidavit filed by his counsel, Akin Olujimi (SAN), in response to a suit earlier lodged by the Osun State Government over alleged non‑payment of statutory local government allocations.

The case, marked SC/CV/379/2025, was initiated by the Osun State Attorney General against the AGF as sole defendant, claiming that the Federal Government withheld the March 2025 allocation meant for the state’s 30 local government councils.

Osun alleged that the Minister of Finance, Wale Odun, admitted the funds were withheld on the AGF’s instructions. However, in a counter‑affidavit sworn to by Taye Oloyede, Special Assistant to the President on Legal Matters, the AGF denied issuing any such directive. Oloyede stated that the Finance Minister also denied the claim during a meeting on May 22, 2025, which he attended.

“Neither the Honourable Attorney General of the Federation nor the Minister of Finance gave any directive to withhold Osun’s LG allocations,” the affidavit read.

Oloyede explained that direct payment of local government funds requires states to submit verified account details to the Ministry of Finance—something Osun allegedly failed to do. He further claimed that Osun intended to channel LG funds into state‑level health and education programmes, in breach of the July 11, 2024 Supreme Court judgment that forbids state governments from spending local government allocations.

“This is a direct violation of the Supreme Court judgment which mandates that LG funds be paid and managed solely by LG councils,” Oloyede said.

Fagbemi also dismissed Osun’s reliance on the 2004 Lagos vs. FG precedent, saying it does not apply. He argued that Osun lacks legal standing to sue on behalf of local councils, especially since it has not shown proof of consent from the councils or evidence that their account details were submitted to federal authorities.

He pointed out that the officials currently running Osun’s councils were elected under the APC‑led administration and remain in office until October 2025.

Fagbemi reminded the apex court that a Federal High Court ruling previously secured by Osun had been overturned by the Court of Appeal, reaffirming that state governments must not control LG finances. He noted that Osun was defendant number 29 in the landmark July 2024 ruling ending state disbursement of LG funds, yet continued to receive and spend allocations between July 2024 and February 2025.

“This suit is a calculated attempt to use the Supreme Court as a shield to legitimise an ongoing act of disobedience,” Fagbemi stated.

He urged the Supreme Court to enforce its judgment by ordering Osun to refund all allocations collected in violation of the ruling:

“The only way to vindicate the authority of this court is to order the plaintiff to pay back all LG funds collected between July 2024 and February 2025. These should be remitted to the Minister of Finance for onward transfer to the respective local governments.”

In a five‑ground preliminary objection, the AGF argued:

• Osun is in contempt of court and not entitled to be heard.

• The state cannot appeal a Supreme Court decision.

• The matter does not raise a valid dispute for the court’s original jurisdiction under Section 232(1) of the Constitution.

• The state lacks locus standi to sue on behalf of LGs.

• Only LG councils themselves—not state governments—can seek redress over unpaid allocations.

Fagbemi maintained that Osun had arrogated to itself the role of “watchdog” over LG funds without lawful authority:

“If any LG has been wrongly deprived of its funds, it is the council itself—not the state government—that has the right to sue.”

Meanwhile, it was learnt that the Osun State Government has since filed to withdraw the suit. Olujimi confirmed the development but clarified that the matter remains in court until the withdrawal application is formally heard in September.