The Supreme Court on Friday declared that the withholding funds due to local government councils by the Federal Government as unconstitutional.
The Court described the action as a “grave breach” of the 1999 Constitution and of its earlier judgment granting full financial autonomy to local government councils.
This was as the court delivered a split judgment in the case filed by the Attorney-General of Osun State against the Attorney-General of the Federation over the alleged unlawful withholding of local government funds.
Related News:
- Gov Adeleke freezes Osun State accounts
- LG autonomy: FG plans sanctions against defaulting states
- Power to control Osun soul continues as APC Plans to Boycott LG elections
By a majority decision of six justices to one, the apex court struck out the suit, holding that the Osun Attorney-General lacked the legal capacity to institute the action on behalf of the state’s 30 local government councils.
The court ruled that only duly elected and inaugurated local government officials have the locus standi to sue or be sued in matters affecting their finances and administration.
Delivering the lead judgment, Justice Mohammed Idris said the Federal Government’s hands were “soiled” by the illegal seizure of funds and urged immediate compliance with constitutional provisions requiring direct allocation to local government accounts.
The court also dismissed contempt allegations raised by the AGF against Osun State, stating that the Federal Government was in greater contempt for failing to release the funds as mandated.
Justice Idris further noted that there was no evidence showing that the Osun Attorney General had been formally authorised by the local government councils to file the action.
In a dissenting judgment, Justice Emmanuel Agim disagreed with the majority, holding that the Osun Attorney-General was entitled to initiate the suit.
He condemned the withholding of funds, warning that such actions could cripple local governance nationwide.
Counsel to the Osun Attorney General, Musibau Adetunbi, SAN, represented the state in the matter.
