BREAKING: Supreme Court To Deliver Judgment Tuesday In Osun’s Battle With Tinubu Govt Over LG Funds

The Supreme Court will on Tuesday, October 14, 2025, deliver judgment in the legal dispute between the Osun State Government and the Federal Government over the withholding of local government funds by the latter.

The dispute centres on Osun State's legal challenge against the Federal Government over the release of local government funds to council chairmen elected under the All Progressives Congress (APC), whose legitimacy is contested by the Peoples Democratic Party-led state government.

In October 2022, local government elections were held in Osun State, resulting in the victory of APC candidates.

The newly elected PDP-led state government questioned the legitimacy of these elections, citing irregularities and legal challenges.

Courts issued conflicting rulings on whether the APC-elected chairmen were validly elected, creating a constitutional dilemma over who should control the local councils.

The Federal Government, through the Attorney-General of the Federation (AGF) and the Central Bank of Nigeria (CBN), withheld local government funds meant for Osun State.

Osun State alleged that the AGF planned to release these funds directly to the disputed APC chairmen, bypassing the state government.

In response, Osun filed a lawsuit at the Supreme Court, seeking to restrain the AGF from releasing the funds to what it called “illegitimate” council officials.

Osun State’s Attorney General, represented by Musbau Adetumbi (SAN), argued that the AGF must respect earlier court decisions affirming the PDP’s position.

The AGF, represented by Akin Olujimi (SAN), maintained that the APC chairmen were democratically elected and entitled to the funds.

The Supreme Court reserved judgment in October 2025, with a decision expected to clarify the constitutional powers of state governments over local councils.

On October 3, SaharaReporters reported that the Supreme Court would hear the case on October 7, 2025.

Speaking with reporters after the sitting, counsel for the Attorney-General of Osun State, Adetumbi, disclosed: “The crux of the matter is to safeguard the money in issue pending the Supreme Court’s determination on Tuesday, 7 October 2025.

“Our contention is that even those who paid the money knew the matter was already before the court. They should have respected the Supreme Court by holding on to the money. Let the Supreme Court speak, everybody will be happy, but for you to pay just like that is not acceptable.”

SaharaReporters earlier reported that ahead of the hearing, the Oyo State High Court sitting in Ibadan extended its Order of Interim Injunction against the United Bank for Africa (UBA), maintaining a no-debit restriction on 30 bank accounts into which withheld Osun local government allocations were paid by the Central Bank of Nigeria (CBN).

Justice Ladiran Akintola, in his ruling, explained that the extension was necessary to allow all parties in the suit No. 1/1149/2025: the Attorney-General of Osun State, the Osun State Local Government Service Commission, and United Bank for Africa Plc to enjoy a fair hearing.

While counsel for the UBA Plc was absent, counsel for the court-sacked APC council chairmen, led by Kazeem Gbadamosi, SAN, holding brief for Kunle Adegoke, SAN, attended proceedings after filing fresh applications for joinder and jurisdictional challenge.

But the counsel to the plaintiffs, Adetumbi, maintained that the ex-APC council chairmen lacked the locus standi, insisting: “The ex-LG chairmen remained strangers to the case since their application for joinder had not yet been decided upon by the court.”

He further explained: “I received the two applications yesterday (Thursday) and today (Friday). I will need time to study them as well as reply on points of law.”

However, Gbadamosi countered, saying his clients were directly affected by the court’s Interim Injunction of 26 September 2025, and argued: “The court has no power in respect of a case in which its jurisdiction is being challenged to extend the order of life span that had expired.”

The court also admitted a further affidavit from Mrs. Aluko Rachael Abidemi, Head of Local Government Administration in Boluwaduro LGA, who alleged attempts by some individuals to siphon funds despite a subsisting court order.