The Osun State Government has formally withdrawn its lawsuit against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) concerning the release of local government allocations.
At a hearing on Friday before Justice Emeka Nwite of the Federal High Court in Abuja, counsel to the state, Musibau Adetumbi, SAN, informed the court that the case had been overtaken by events. He explained that the funds in question had already been disbursed from the CBN, rendering the legal action unnecessary.
“Our primary aim was to safeguard the money. But despite the pending case and an existing order of status quo, the funds were moved,” Adetumbi told the court.
The suit, initially filed by the Osun State Attorney-General, aimed to prevent the Federal Government from releasing allocations to local government chairmen and councillors appointed during former Governor Adegboyega Oyetola’s administration, who were later removed from office.
Justice Nwite had earlier removed the Attorney-General of the Federation from the case after the plaintiff discontinued the suit against him, citing a similar matter already pending before the Supreme Court.
While the lawyers representing the CBN and AGF did not oppose the withdrawal of the case, they contested parts of the supporting affidavit filed by the Osun State Government. CBN’s counsel, Muritala Abdulrasheed, SAN, described sections of the affidavit as “damaging” and “misleading,” noting that it referenced individuals not involved in the case. He urged the court to expunge paragraphs 5 to 11 of the affidavit.
The AGF’s counsel, Tajudeen Oladoja, SAN, also opposed certain claims in the affidavit, particularly the assertion that the AGF had no valid defence in the matter. He argued that such statements were premature, as the AGF had not yet been given the opportunity to respond. Oladoja further requested a cost of ₦10 million against the plaintiff for legal expenses and time wasted.
In response, Adetumbi maintained that a notice of discontinuance filed under Order 50 Rule 2 of the Federal High Court Rules does not require the payment of costs. He also argued that the defendants’ late filings made them ineligible for such claims.
Justice Nwite adjourned the matter to October 29, 2025, for ruling on the plaintiff’s application to discontinue the case and the defendants’ respective applications, including the request to strike out parts of the affidavit and for costs.
In an earlier ruling, the court had dismissed objections by the CBN and AGF, affirming that the Osun State Attorney-General had the legal standing to file the suit on behalf of the local governments.
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