AGF Fagbemi Warns Gov Adeleke: Refund 7 Months LGA Funds in line with Supreme Court Order

Abiola Olawale
Writer

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• Accuses Davido’s Uncle, Osun gov of infractions

By Abiola Olawale

The Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi (SAN), has called on the Supreme Court to order Osun State to refund seven months’ worth of local government (LG) allocations.

The AGF accused the state government under the leadership of Governor Ademola Adeleke, uncle to Davido, popular Afrobeat musician, of flouting a landmark court ruling.

The demand, filed through Fagbemi’s counsel, Chief Akin Olujimi (SAN), intensifies a legal battle over local government financial autonomy between Osun State and the federal government.

The dispute stems from a suit (SC/CV/379/2025) initiated by the Osun State Government, which accused the Federal Government of withholding March 2025 allocations for its 30 LG councils.

Osun State government claimed that the Minister of Finance, Wale Edun, acted on Fagbemi’s directive to delay payments.

However, the AGF denied issuing any such order, labeling the state’s claim as misleading.

He also accused Osun State Government of contempt for violating a July 11, 2024, Supreme Court judgment.

Recall that this ruling, in AGF v. Attorney General of Abia State & Others, mandated direct payment of LG funds to councils, prohibiting state governments from controlling or disbursing them.

Fagbemi argued that Osun, listed as Defendant 29 in the July 2024 case, continued to receive and spend LG allocations despite acknowledging the court’s order.

He further challenged the state’s legal standing, asserting that only LG councils, not state governments, can sue for unpaid allocations.

Oloyede emphasised that direct payment of allocations to LGs requires only that they submit account details to the Ministry of Finance.

He claimed the individuals currently administering Osun’s LGs were elected under the previous APC-led state government and remain in office until October 2025.

He asserted that Osun failed to show that its LGs had submitted their account details to the Finance Ministry.

Oloyede further argued that the plaintiff failed to show that it had the legal; authority or consent of the LGs to initiate the lawsuit.

The AGF described Osun’s lawsuit as a calculated attempt to gain the Supreme Court’s backing to continue violating its ruling.

In a five-ground preliminary objection, the AGF argued that: “The plaintiff is not entitled to be heard due to contempt. The plaintiff has no right of appeal against the Supreme Court’s decision. The case does not present a genuine dispute to trigger the court’s original jurisdiction under Section 232(1) of the Constitution. The plaintiff has no locus standi to sue on behalf of local governments. Only LGs—not state governments—can seek redress for unpaid allocations. The AGF stressed that Osun State had improperly appointed itself as a ‘watchdog’ over LG funds, despite having no authority to litigate on their behalf.

“If any LG has been wrongly deprived of its funds,” he concluded, “it is the council itself—not the state government—that has the right to sue.”

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