Supreme Court Dismisses Osun Govt Suit on LG Allocations, Says AG Lacked Locus Standi

The Supreme Court has struck out a suit instituted by the Osun State Government seeking to compel the Federal Government to release statutory allocations due to local governments in the state.

In a majority judgment delivered on Friday by Justice Mohammed Idris, the apex court held—by a six-to-one decision—that the Attorney General of Osun State lacked the legal standing to file the case on behalf of the local governments, noting that LGs are independent legal entities capable of asserting their own rights in court.

Justice Idris ruled that the state failed to establish any valid cause of action to invoke the Supreme Court’s original jurisdiction under Section 232(1) of the Constitution. He explained that the dispute centred on alleged failure by the Federal Government to release funds belonging to Osun’s local governments, not funds owed to the state itself, thereby eliminating any direct controversy between Osun State and the Federal Government.

Referencing the landmark case of AG Abia & Others v. AG Federation, where the Supreme Court ordered direct allocation payments to local governments nationwide, Justice Idris clarified that only affected local governments—not state governments—can bring such suits.

Despite striking out the case, the Justice expressed strong displeasure over the Federal Government’s failure to fully implement the court’s earlier judgment mandating direct payment of local government allocations across the federation. He reaffirmed that the Federal Government is under a constitutional obligation to remit LG funds directly without any delay or interference.

Justice Emmanuel Agim delivered the lone dissenting judgment, disagreeing with the majority’s position.

More details to follow…