A Federal High Court sitting in Abuja, on Monday, September 8, 2025, commenced hearing of a suit filed by the Osun State Government against the Central Bank of Nigeria (CBN), and the Accountant General of the Federation (AGF) over withheld Local Government funds.
The lawsuit is part of an ongoing legal tussle between the State and the CBN over the non-disbursement of local government allocations.
In the suit before Justice Emeka Nwite, the Osun State Government claimed that the CBN and the Office of the AGF are plotting to divert “funds meant for local governments into private accounts” operated by individuals who are “impersonating government officials”.
The state government asserted that the move, if allowed is a gross violation of public finance regulations and the Nigerian Constitution.
It also averred that the plan would seriously undermine pending legal actions before the Supreme Court with regards to the administration of local government funds.
The legal dispute stemmed from a political conflict between the All Progressives Congress (APC) and the Peoples Democratic Party (PDP) in the state as a result of conflicting court rulings on the legitimacy or otherwise of the October 2022 Local Government Councils elections.
