The Federal High Court in Abuja on Monday commenced hearing in a suit filed by the Osun State Government against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) over alleged moves to divert statutory allocations meant for the state’s local governments.
The matter, presided over by Justice Emeka Nwite, featured legal appearances from counsel representing both the plaintiff and the defendants.
Central to the dispute is the management of funds allocated to Osun’s 30 local government councils. The state government alleged that the CBN and the AGF were working to channel allocations into private accounts operated by individuals impersonating government officials. It insisted such actions, if carried out, would amount to a gross violation of Nigeria’s financial regulations and constitutional provisions, while also undermining transparency in public fund management.
The state further argued that the alleged scheme poses a direct challenge to ongoing proceedings at the Supreme Court, which is currently deliberating over wider issues concerning the administration and autonomy of local governments in Osun State.
The case is the latest chapter in a long-running political and legal battle between the Peoples Democratic Party (PDP)-led government of Governor Ademola Adeleke and the opposition All Progressives Congress (APC). The rift traces back to the controversial October 2022 local government elections, which produced conflicting court rulings on their validity and sparked heated debates on the control of grassroots governance.
Justice Nwite has not yet given a ruling as proceedings continue.
Do you want me to also draft a shorter, punchy newsroom version (like what BusinessDay or Punch would carry), so you can use depending on outlet?
