The Supreme Court on Friday dismissed a suit by the Osun State Government seeking to compel the Federal Government to release withheld statutory allocations belonging to the state’s 30 local government councils, because the state lacked the legal capacity to initiate the action.
In a split decision of six to one, the seven-member panel declared that the Attorney General of Osun State was not competent to activate the Supreme Court’s original jurisdiction on behalf of the councils.
Delivering the lead judgment, Justice Mohammed Idris held that only the local government areas—recognised by law as autonomous entities—could personally challenge the Federal Government over issues relating to their finances.
Justice Idris stated that the Supreme Court, while serving as a court of first instance in disputes strictly between states and the Federal Government, could not entertain a suit where the proper parties were not before it.
He rejected the argument by the Osun State Attorney General that the legal action was brought in public interest, noting that such a claim could not override clear constitutional provisions on locus standi.
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Although the court upheld the preliminary objection filed by the Attorney General of the Federation, which targeted the competence of the suit, the FG was cautioned to ensure full implementation of an earlier judgment granting fiscal autonomy to all 774 local governments across the federation.
Osun State had approached the apex court seeking several declarations and orders, including a pronouncement that the AGF lacked the power to bypass subsisting decisions of the Federal High Court and the Court of Appeal by withholding local government allocations or directing payments to former APC council officials removed by the state government.
Counsel for Osun State, Musibau Adetunbi, SAN, argued that the AGF attempted to “destroy the res” by making moves to release the disputed funds despite an existing court order halting such payments.
He insisted the Federal Government’s actions threatened the subject matter of the suit and undermined judicial proceedings.
The Federal Government, however, maintained that the state had no cause of action, submitting that the Osun Government was merely seeking to obstruct former APC council officials whose three-year tenure had already lapsed. It contended that the plaintiff lacked standing and had engaged in an abuse of court process.
Details are expected in subsequent updates.
Punch News
