Osun Government Withdraws Suit Against CBN, AGF Over Withheld LG Funds

The Osun State Government, on Friday, withdrew his suit against the Central Bank of Nigeria and the Accountant-General of the Federation, Shamsedeen Ogunjimi, which sought to prevent the Federal Government from releasing withheld local government funds to court-sacked local government chairmen and councillors elected during former Governor Adegboyega Oyetola’s tenure.

Don Feliciation

Speaking in court, the government’s counsel, Musibau Adetumbi, SAN, said the purpose of the suit, which was to safeguard the funds, had been overtaken by events, as the money had already been released.

A statement shared with Saturday PUNCH quoted Adetumbi as saying, “On September 29, 2025, I told the court our aim was to safeguard the money. Between then and now, the money was moved out of the CBN.”

Seyin Makinde 6 Years Governor’s Media

“Assuming, without conceding, that the court-sacked APC chairmen and councillors had a tenure, it lapsed on Wednesday, October 16, 2025.”

 

Counsel for the defendants, Muritala Abdulrasheed and Tajudeen Oladoja, did not oppose the discontinuance but challenged claims in the plaintiff’s affidavit of facts.

Ladoja Jonathan Feliciation

Abdulrasheed said some statements in the affidavit were “damaging” and against individuals not party to the suit. He urged the court to expunge paragraphs five to eleven of the affidavit, describing the grounds for discontinuance as “in bad faith.”

Oladoja, while not opposing the withdrawal, said the plaintiff’s second ground — that the money had been paid — was untrue, since the AGF had not been given the opportunity to respond. He also sought N10m in costs, citing wasted court time and processes.

Algon Ladoja Feliciation

Responding, Adetumbi maintained that under Federal High Court Rules, a notice of discontinuance does not attract costs, arguing that the defendants had not filed processes before the court.

The trial judge, Justice Emeka Nwite, adjourned until October 29 to rule on the discontinuance and related applications.

 

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