—Court to rule on discontinuance October 29
The Osun State Government has withdrawn its suit against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF), Mr. Shamsudeen Ogunjimi, over the controversial release of local government funds allegedly meant for council officials sacked by the courts.
The government’s decision was announced on Friday before the Federal High Court in Abuja, where its counsel, Chief Musibau Adetumbi (SAN), informed Justice Emeka Nwite that the purpose of the suit had been overtaken by events.
According to Adetumbi, the state approached the court earlier to prevent the disbursement of funds to local government chairmen and councillors elected during the administration of former Governor Adegboyega Oyetola, whose election into office had been nullified by the courts.
“Our aim was to safeguard the funds pending the resolution of the legal questions surrounding the legitimacy of the so-called local government executives. Between September 29 and now, the money in contention has already been moved out of the CBN,” Adetumbi told the court.
He further argued that even if the tenure of the dismissed All Progressives Congress (APC) chairmen and councillors were to be recognized, it had expired on Wednesday, October 16, 2025.
However, counsel to the defendants, Muritala Abdulrasheed and Tajudeen Oladoja, did not oppose the withdrawal but contested the plaintiff’s claims. Abdulrasheed described some portions of the plaintiff’s affidavit as “damaging” and targeted at persons not party to the suit. He urged the court to strike out paragraphs five to eleven of the affidavit and described the discontinuance as being done “in bad faith.”
Oladoja also argued that the second ground of withdrawal — that the funds had already been paid — was false, insisting that the AGF was yet to be granted a chance to formally respond. He consequently sought N10 million in costs for what he termed “wasted court processes and time.”
In response, Adetumbi maintained that the Federal High Court Rules do not provide for costs where a notice of discontinuance is filed, especially since the defendants had not yet filed their processes.
Justice Nwite adjourned the matter until October 29, 2025, to deliver his ruling on the discontinuance and related applications.
Background of the Case
The dispute traces back to the tenure of former Governor Adegboyega Oyetola, under whose administration local government elections were conducted in October 2022. The opposition People’s Democratic Party (PDP) had challenged the legality of the polls, describing them as unconstitutional and in violation of extant electoral laws.
In December 2022, the Osun State High Court, sitting in Osogbo, declared the elections null and void, ruling that the then Osun State Independent Electoral Commission (OSIEC) had failed to comply with the provisions of the Electoral Act. The judgment effectively sacked all elected local government chairmen and councillors across the state.
Following that decision, the incoming administration of Governor Ademola Adeleke appointed caretaker committees to oversee local government affairs pending the conduct of fresh elections.
However, controversy erupted months later when reports emerged that the Federal Government intended to release accumulated statutory allocations for local governments to the sacked officials, in line with a Supreme Court ruling affirming local government financial autonomy.
To prevent the disbursement, the Osun State Government filed a suit against the CBN and the Accountant-General of the Federation, seeking an order to restrain them from releasing the funds to the deposed council officials.
The Friday withdrawal effectively brings that legal battle to a pause — although the court’s decision on the terms of discontinuance, including possible sanctions, remains pending.
Fresh Facts Magazine will continue to monitor developments in the case and report updates as they unfold.
