Court Dismisses CBN, AGF’s Objection in Osun LG Funds Suit

Justice Emeka Nwite of the Federal High Court, Abuja, has dismissed the preliminary objection filed by the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) challenging a suit over the withholding of local government funds in Osun State.

The suit, instituted by the Attorney-General of Osun State, Oluwole Jimi-Bada (SAN), seeks to restrain the Federal Government from releasing withheld allocations to local government officials elected during the administration of former Governor Adegboyega Oyetola.

In his ruling, Justice Nwite held that the Osun Attorney-General has the locus standi (legal right) to file the action on behalf of the local government authorities.

He stated that as the chief law officer of the state, the Attorney-General has both the duty and authority to act in the public interest, including protecting local government finances.

The court therefore dismissed the argument by the CBN and AGF that the suit was incompetent on the grounds that the Attorney-General lacked the legal capacity to sue.

Justice Nwite further ruled that the ongoing case “does not constitute an abuse of court process,” noting that while parallel proceedings may appear duplicative, there was no evidence that the plaintiff had misused judicial resources or acted in bad faith.

On the transfer of the case from the Osogbo Judicial Division to the Abuja Division by the Chief Judge of the Federal High Court, Justice Nwite affirmed that the Chief Judge acted within his discretionary powers under Section 21(1) of the Federal High Court Act, which allows such transfers at any stage before judgment.

He consequently dismissed the Osun State Government’s motion seeking to return the case to the Osogbo Division, describing it as lacking in merit.

Addressing allegations of bias, Justice Nwite ruled that the claim was “unfounded and speculative,” stressing that a routine administrative act by the Chief Judge could not amount to bias.

“Bias denotes a disposition or inclination of the mind that prevents a judge from making an objective determination. A mere administrative transfer of a case cannot, by any stretch, amount to bias,” he held.

The suit initially listed the Attorney-General of the Federation as a defendant, but Justice Nwite struck out his name on September 22, after the Osun Attorney-General discontinued the action against him due to a similar case already pending before the Supreme Court.

That same day, the Osun Government, through its counsel, Musibau Adetumbi (SAN), filed a motion seeking the case’s transfer back to the Osogbo Division — a request that has now been dismissed.