The Central Bank of Nigeria (CBN), and the office of the Accountant General of the Federation (OAGF) on Monday, September 29, 2025, at the Federal High Court in Abuja denied the release of the withheld Osun State Local Government financial allocations from the Federation Account Allocation Committee to the chairmen and councillors elected on the platform of the All Progressives Congress (APC) in 2022.
The two federal government agencies particularly said that the claim of the release of the funds to the disputed chairmen and councillors whose tenure is expected to expire on October 25, was at the realms of rumours.
The denial by the CBN and OAGF followed a suit filed by Musibau Adetunbi, SAN, legal counsel to the Osun State Government, who told the court presided over by Justice Emeka Nwite that the funds which is a subject of litigation before his court was surprisingly released between Thursday and Friday last week unlawfully to the APC chairmen.
Adetunbi noted that the development took place in spite of an Order of the court which directed that status quo should be maintained pending the resolution of the suit on the financial allocation.
According to Adetunbi, “The CBN and OAGF released the withheld money through special accounts opened for the disputed Local Government chairmen at the United Bank for Africa (UBA)”.
Adetunbi however said that in a swift reaction, the Osun State Government approached a High Court of Oyo State and secured a restraining order against the United Bank for Africa, stopping it from disbursing the fund to the affected persons.
He also told the court that the Osun State Government had to approach the Oyo State High Court because their counterparts in Osun State are on strike.
While admitting that the restraining order had been served on the bank, CBN and OAGF, Adetunbi however, said that he had no documentary evidence as at the time of his submissions to be placed before the court
But, in their response, the duo of Murtala Abdulrasheed, SAN, and Tajudeen Oladoja, SAN, who are counsels to the CBN and the OAGF respectively, said that their clients did not release the funds to the APC Local Government chairmen as alleged by the plaintiff.
In their separate submissions, the counsels to CBN and OAGF, who aligned their submission, said that the information by the counsel to the plaintiff remained rumours in the absence of documentary evidence.
In his motion seeking to transfer hearing of the case to Osogbo, Osun State, the counsel to the State Government said that since the vacation of the court had lapsed, the suit should be transferred to where it was originally instituted in the interest of justice, fair hearing and fair play.
Adetunbi argued that transferring the suit from Osogbo to Abuja during vacation was in bad faith and questionable because there was no urgency to warrant such action.
He specifically said that the letter transferring the case by the Chief Judge of the Federal High Court gave untenable reasons that all the defendants are based in Abuja, adding that such reasons ought not to have come from the Chief Judge except the defendants.
But, while opposing the move, the counsels to the CBN and OAGF, argued that the letter transferring the case from Osogbo to Abuja made it clear that the Abuja court should hear the suit substantively.
The CBN and OAGF further said that transferring a case by the Chief Judge, John Tsoho was an administrative procedure that cannot be challenged by the Osun State Government.
The two agencies of the Federal Government therefore pleaded that the case be expeditiously determined in Abuja.
After listening to the counsels, Justice Nwite fixed October 16, 2025, for ruling on whether or not the suit should be returned to Osogbo.
