The Nigerian government handles Osun, wanting a refund from the allocation of LG seven months

Attorney General Federation (AGF) and Minister of Justice, Lateef Fagbemi (SAN), on Friday urged the Supreme Court to force the Osun state government to restore the legal allocation of seven months intended for the Regional Government Council.

Demand is part of the formal AGF response to legal actions carried out by the Osun state government for the detained federal allocation.

Osun has filed a lawsuit for SC/CV/379/2025 against AGF, accused the Federal government of failing to release the allocation of the local government in March 2025.

However, in the counterparted by the advisor of Fagbemi, the Head of Akin Olujimi (SAN), AGF firmly refused to issue such direction and challenge the legitimacy of claims and locus of the Standi state government.

In a written statement, overthrown by Taye Oloyede, the President’s Special Assistant, AGF stated that both he and the Minister of Finance did not instruct the deduction of Osun Regional Government funds. Oloyede added that during the meeting on May 22, 2025, Odun was firmly rejected to receiving any direction for that effect.

In addition, AGF argues that Osun failed to present evidence showing that the allocation was deliberately detained or that the state had submitted details of the bank account needed for the Regional Government Council to receive funds directly. According to Oloyede, the board in question was elected during the previous APC administration and continued to take office until October 2025.

Also read: Reps threatens the arrest of Gov CBN, Cardoso, more than N5.2TN surplus, funds that are not claimed

Fagbemi argues that the state government acts in the insult of the Supreme Court on July 11, 2024, AGF’s decision v. The Attorney General for the State of Abia & others, which prohibits the state government to handle local government funds. The verdict requires that the allocation is paid directly to the local council. Although registered as a defendant 29 in the case and acknowledged the direction of the court, Osun allegedly continued to collect and spend local government funds between July 2024 and February 2025.

AGF accused the government of the State of Osun sought judicial protection of continuing to violate the Supreme Court’s decision. He described the lawsuit as a “terrible act of insult” and asked the top court to emphasize his authority by ordering Osun to pay the allocation of the local government received for a period of seven months. He requested that the returned funds sent to the Minister of Finance for proper disbursement to the respective councils.

In the initial objection of five points, Fagbemi argued that Osun did not have a legal position to start a lawsuit, because only the local government, not the state government, had constitutional rights to seek compensation for unpaid allocation. He further stated that this case did not lead to original disputes that would guarantee the original jurisdiction of the Supreme Court based on Section 232 (1) The 1999 Constitution (as amended).

“The plaintiff does not have a legal capacity to act as a supervisor of the financial rights of regional government authorities that are constitutionally recognized,” AGF was proposed. “If there is a regional government council who believes funds have been detained, the council, not the state government, who are entitled to seek legal recovery.”

AGF also noted that the previous Federal High Court’s decision that supported the Osun state government had been canceled at an appeal, further weakening the state position.

Meanwhile, it has emerged that the government of the State of Osun has chosen to withdraw the lawsuit. The Head of Olujimi (San), AGF advisor, confirmed the development but noted that the case remained technically active until the Supreme Court officially heard and approved the withdrawal application, which was expected in September.