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Nigeria: LG Funds Seizure - Osun Takes FG to Supreme Court

Osun State challenges federal withholding of N58.9 billion in local government funds, citing court rulings that validate February 2025 elections and demand release to elected councils.

  • The Government of Osun State has filed suit at the Supreme Court of Nigeria against the Attorney-General of the Federation over withheld allocations since March 2025 affecting 30 local government councils, while contesting a case transfer at the Federal High Court, Osogbo Division.
  • The row began after a March 26, 2025 letter from the Attorney-General of the Federation advising suspension of disbursements, while local government disputes date back to late 2022 and a June 13, 2025 Court of Appeal affirmed the February 22, 2025 elections.
  • Official records show the Office of the Accountant-General of the Federation allocated N58,918,119,222.8 to Osun's 30 councils between February and June 2025, with Osun East receiving N20.23 billion and Ede North N1.42 billion.
  • Osun seeks both immediate payments and a lasting injunction, asking the Supreme Court of Nigeria to release withheld funds to duly elected council officials and bar the AGF from future withholding; on August 25, 2025, it filed for a stay at the Federal High Court, Osogbo.
  • Analysts say the shutdown has created a governance vacuum stalling sanitation, healthcare, and rural projects, while Insight Initiative for Community and Social Development urged traditional rulers and community leaders to intervene amid protests and counter-lawsuits.
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Tekedia broke the news in on Tuesday, August 26, 2025.
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