The Osun State Government, under the leadership of the Peoples Democratic Party (PDP), has initiated legal action against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) to prevent the alleged diversion of local government allocations. This case, rife with political undertones, stems from the dismissal of All Progressives Congress (APC) local government chairmen elected in October 2022. The PDP-led government maintains that these chairmen were removed following a valid Federal High Court judgment, later upheld by the Court of Appeal. The crux of the dispute lies in the control of local government funds, with the state government seeking to ensure these funds are not disbursed to the dismissed APC chairmen.
The legal battle has taken a complex turn with the transfer of the case from the Osogbo division of the Federal High Court to the Abuja division. The Osun State Government, represented by Musibau Adetunbi (SAN), is contesting the Abuja division’s jurisdiction, arguing that the transfer was based on a fiat purportedly issued by the Chief Judge of the Federal High Court, Justice John Tsoho. The state government seeks to have this fiat, conveyed in a letter signed by the Chief Judge’s personal assistant, set aside. Furthermore, they are requesting the court to decline jurisdiction during its annual vacation and return the case file to the Osogbo division. This jurisdictional challenge adds another layer to the already intricate political and legal standoff.
Central to Osun State’s case is the request for an injunction preventing the CBN from opening accounts for the dismissed APC chairmen and prohibiting both the CBN and the AGF from releasing local government allocations to them. The state’s legal team argues that any disbursement to the dismissed chairmen would violate existing court judgments and undermine the rule of law. They contend that the AGF’s apparent intention to release funds to the APC chairmen, as indicated in an affidavit of urgency, necessitates their pursuit of a separate suit at the Supreme Court against the AGF for constitutional clarification. This underscores the perceived seriousness of the alleged threat to the proper allocation of local government funds.
The Osun State Government’s decision to file a separate suit against the AGF at the Supreme Court stems from their belief that the AGF is poised to release funds to the dismissed chairmen, despite court rulings to the contrary. They argue that this action necessitates seeking constitutional interpretation and clarification from the apex court. To avoid potential conflicts and duplication of legal arguments, the state has filed a notice of discontinuance against the AGF in the current Federal High Court case, intending to focus its efforts on the Supreme Court proceedings. This strategic legal maneuvering highlights the state government’s resolve to pursue all available legal avenues to protect local government funds.
During the court proceedings, the CBN and the AGF, represented by Dr. Muritala Abdulrasheed and Tajudeen Oladoja (SAN) respectively, opposed the Osun State Government’s applications. They urged the court to proceed with the case during the vacation period to prevent the matter from becoming moot. Chief Akin Olujimi (SAN), representing the AGF, also contested the validity of the notice of discontinuance served by the Osun State Government, claiming it was not properly executed. These opposing arguments further complicate the already complex legal landscape, highlighting the contested nature of the case and the different interpretations of legal procedures.
Justice Emeka Nwite, the vacation judge presiding over the case, adjourned the matter to September 22, 2024, to hear all pending applications. This adjournment allows all parties to prepare their arguments fully and provides the court with sufficient time to consider the complex legal and jurisdictional issues at play. This case underscores the ongoing political tensions in Osun State, with the control of local government funds serving as a key battleground between the PDP-led state government and the APC. The outcome of this case will have significant implications for local governance and the distribution of resources within the state. It also highlights the important role of the judiciary in resolving complex political and financial disputes within the Nigerian federal system.
