Court dismisses CBN, AGF’s objection in Osun LGA Funds suit

A Federal High Court in Abuja has dismissed an objection filed by the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) seeking to halt a lawsuit challenging the alleged withholding of Osun State’s local government allocations.

The case, filed by the Osun State Attorney-General, contests the release of funds to local government officials who were elected during the tenure of former Governor Adegboyega Oyetola but later removed from office.

In his ruling on Thursday, Justice Emeka Nwite held that the Osun State Attorney-General has the legal authority to institute the case on behalf of the state’s local councils. He dismissed the argument that the AG lacked the locus standi, noting that as the chief law officer of the state, he is empowered to defend public interests, including the protection of local government funds.

The court also rejected claims that the case amounted to an abuse of judicial process, saying there was no evidence that the Osun government had misused or obstructed the course of justice. Justice Nwite ruled that the ongoing case could not be considered an abuse even if similar matters were being heard in other courts.

On the issue of transferring the case from the Osogbo division to Abuja, the judge affirmed that the Chief Judge of the Federal High Court acted within the powers granted under Section 21(1) of the Federal High Court Act, which allows such transfers before a final judgment.

He dismissed the application by the Osun government seeking to return the case to Osogbo, ruling that it lacked merit. Addressing claims of bias over the case transfer, Justice Nwite described them as “unfounded and speculative,” emphasizing that an administrative decision by the Chief Judge cannot be equated to bias without credible evidence.

The case has been adjourned to October 17 for continuation of hearing.

Earlier in the proceedings, the AGF was removed as a party in the suit after the Osun government decided to discontinue action against him, noting that a related matter was already before the Supreme Court.