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Nigeria’s Supreme Court has dismissed a lawsuit brought by the Osun State Government, represented by the Attorney General, seeking to compel the Nigerian government to release funds owed to Local Governments in the state.
In a majority ruling of six to one, Justice Mohammed Idris ruled on Friday that the Attorney General of Osun State lacked the legal standing to file the case on behalf of the Local Governments, which are legal entities with the ability to sue for their rights.
Justice Idris stated that the plaintiff did not demonstrate any valid cause of action that would permit the Supreme Court’s original jurisdiction as outlined in Section 232(1) of the Constitution.
Additionally, Justice Idris said that the core issue in this matter concerned the alleged failure of the government to release funds earmarked for Local Governments in Osun State from the Federation account, and therefore, there was no existing dispute between Osun State and the Nigerian government that would grant the Attorney General the right to bring the case before the Supreme Court.
In differentiating this case from AG, Abia and others v. AG of the Federation, where the Supreme Court mandated the direct disbursement of funds to Local Governments nationwide, Justice Idris ruled that such disputes regarding withheld Local Government funds should be initiated by the affected Local Governments themselves.
However, Justice Idris expressed disapproval regarding the government’s failure to implement all necessary actions to comply with the Supreme Court’s ruling in AG, Abia and others v. AG of the Federation, which required direct payments of allocations to Local Governments throughout the country.
He stressed that the judgment imposed a duty on the government to ensure that all funds credited to Local Governments in the Federation Account are transferred directly to them without further delay.
