LG Funds: Court to Hear Osun Govt’s Case Against CBN, Accountant-General Sept 22

The Federal High Court in Abuja has scheduled September 22 for the hearing of multiple applications in the suit filed by the Osun State Government against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) over alleged moves to channel local government allocations to officials previously removed from office.

The legal dispute stems from the tenure of chairmen elected under the All Progressives Congress (APC) in October 2022. The Peoples Democratic Party (PDP)-led administration in Osun insists that those officials were removed by a valid judgment of the Federal High Court, which was later upheld by the Court of Appeal.

At today’s proceedings, Justice Emeka Nwite, sitting as vacation judge, adjourned the case after considering submissions from all parties.

One of the issues raised was the transfer of the matter from the Osogbo Division of the court to Abuja.

Senior Advocate of Nigeria (SAN), Musibau Adetunbi, representing the state Attorney-General, argued that the Abuja court lacked jurisdiction and asked that the case be returned to Osogbo.

He also urged the court to set aside the directive of the Chief Judge of the Federal High Court authorising the transfer during the annual vacation.

The state government further requested an interim order restraining the CBN and the Accountant-General from operating accounts on behalf of the sacked APC chairmen and councillors.

In addition, Osun withdrew its earlier claims against the Attorney-General of the Federation, explaining that a fresh action had been lodged at the Supreme Court to directly challenge his alleged involvement in the matter.

Counsel representing the CBN, the Accountant-General, and the AGF opposed the applications, insisting that the matter should proceed during the vacation period to avoid becoming irrelevant.

After hearing all sides, Justice Nwite adjourned the matter until September 22 for arguments on all pending motions.

The controversy highlights the ongoing political battle in Osun State between the PDP government and the opposition APC over control of local councils and access to federal allocations, which are critical to grassroots administration.