The standoff between Osun State Government and the Federal Government has now reached the highest court in the land as Governor Ademola Adeleke’s administration drags the FG before the Supreme Court over the alleged withholding of statutory allocations meant for the state’s 30 local government councils.
The dispute, which has been simmering since February 2025, centers on the funds that the Osun government insists rightfully belong to its councils. In a suit filed on April 24, Osun accuses the Federal Government of breaching the Constitution by starving local councils of their statutory revenue despite the presence of democratically elected officials at the grassroots.
Backed by an affidavit of urgency, Osun argues that the non-release of the allocations for February, March, and April—with doubts also hanging over May’s disbursement—poses a grave threat to healthcare, education, and other essential services across the state.
The state’s legal team leans heavily on constitutional provisions, particularly Sections 7(1) and 162 of the 1999 Constitution (as amended), as well as past judicial precedents affirming local government autonomy. They insist the FG has no power to unilaterally block funds once they have been approved for disbursement.
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But the Federal Government has fired back. In its defense, the FG argues that Osun has no constitutional standing to sue on behalf of its councils, claiming that only the councils themselves can bring such action. Government lawyers also cite a 2024 Supreme Court ruling which emphasized that local government allocations must be paid directly to elected councils, not through state governments.
The matter has already drawn reactions from the legal community. Senior Advocate of Nigeria Mike Ozekhome faulted the Federal Government’s action, describing it as “highly political” and likening it to the controversial withholding of funds from Lagos State in the early 2000s. The Nigerian Bar Association (NBA) has also weighed in, calling the FG’s move unconstitutional and a violation of the rule of law.
For Osun, the case is about survival at the grassroots. For Abuja, it’s about enforcing what it calls “financial discipline” and ensuring funds go directly to councils.
As Nigerians wait for the Supreme Court to fix a hearing date, the case is fast shaping up as a litmus test for local government autonomy in Nigeria—and the outcome could redefine the balance of power between the states and the federal government.
