A major political crisis has erupted in Osun State over the control of local government councils, as the state government, led by the Peoples Democratic Party (PDP), has taken the Federal Government to the Supreme Court.
The move follows the alleged withholding of monthly allocations meant for the state’s local government councils.
According to the Osun State Government, federal allocations for the months of February, March, and April 2025 have not been disbursed, while that of May remains uncertain.
The state is accusing the Federal Government of unlawfully seizing funds despite the presence of democratically elected local government councils.
The lawsuit, filed on April 23, 2025, and marked SC/CV/379/2025, was initiated by Musibau Adetunbi, SAN, on behalf of the Osun State Attorney General. The Attorney General of the Federation is listed as the sole defendant.
In the suit, the state is seeking a Supreme Court declaration that the Federal Government has no constitutional right to withhold, suspend, or seize local government funds without justification. It argues that such actions violate the provisions of Section 162 and Section 7 of the 1999 Constitution, which guarantee the financial autonomy and democratic structure of local governments.
Among the key questions the state wants the court to decide are:
Whether the Federal Government can legally withhold funds due to local governments in a state with democratically elected council leadership.
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Whether such action threatens the existence and effective governance of the councils.
Whether Osun State can be singled out for non-payment while other states continue receiving allocations.
The state government is asking the court to:
Declare the withholding of allocations for March 2025 unlawful and unconstitutional.
Rule that the ongoing seizure of funds endangers local governance and violates constitutional provisions.
Order the immediate release of withheld funds for March 2025.
Direct the Federal Government to continue disbursing funds to Osun State’s local governments through the state joint allocation account until alternative logistics for direct payment are implemented.
In an affidavit of urgency, Osun State Commissioner for Finance, Ogungbile Adeola Olusola, warned that the continued seizure of funds could cripple essential services such as education and healthcare.
“If the Federal Government is not urgently restrained,” the affidavit reads, “local governments will be unable to carry out their constitutional duties, and this will ultimately paralyze governance in the entire state.”
The affidavit also emphasized the hardship the people of Osun State are already facing due to the withheld funds, stressing the need for immediate judicial intervention.
The Supreme Court has yet to fix a date for the hearing.
The controversy stems from a February 2025 call by the All Progressives Congress (APC) for the Federal Government to withhold local government allocations, alleging that the PDP-led state government conducted illegal council elections in defiance of a Court of Appeal judgment.
The APC described the elections held on February 22, 2025, as unlawful and insisted that only democratically elected and judicially recognized council officials should receive federal allocations.
In response, the PDP and the state government dismissed the APC’s claims, citing a failed legal challenge at the Federal High Court and an appeal that was struck out by the Court of Appeal on January 13, 2025, for lack of diligent prosecution.
Meanwhile, the Court of Appeal is currently considering an APC application seeking to relist the dismissed appeal against the sack of its council officials on November 30, 2022.
A ruling on the application, and a preliminary objection filed by the Action Peoples Party (APP) and the Osun State Independent Electoral Commission (OSSIEC), is still pending.
In the midst of the legal battle, the Osun State chapter of the Inter-Party Advisory Council (IPAC) has appealed to the Federal Government not to punish the state’s local governments by withholding funds, urging a resolution of the dispute through lawful means.
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