Supreme Court Rules Against Withholding Osun LG Funds

The Federal Government has withheld statutory allocations to local government councils in Osun State, amounting to ₦1.962 billion over a 15-month period from March 2025 to May 2026. This withholding is subject to legal and political disputes, particularly following local government elections in February 2025.

The Supreme Court, led by Justice Moham Idri, ruled that the Federal Government's action was unconstitutional, declaring the seizure of funds a grave breach of the 1999 Constitution. The court found that the Federal Government wrongfully withheld funds that should have been directly channeled to local accounts, dismissing the state's suit against the Federal Government.

The ruling has significant implications for Osun State, where Governor Ademola Adeleke highlighted the adverse effects on poverty, hunger, and the ability to pay salaries for primary school teachers, nurses, and local government employees across the state's 332 primary healthcare centers.