ABUJA, Nigeria — The federal government on Monday, September 29, 2025, denied claims that it had released withheld local government allocations in Osun State to All Progressives Congress (APC) chairmen and councillors who were removed from office in 2022.
The denial came during the resumed hearing of a suit filed by the Osun State Government at the Federal High Court, challenging the planned release of the funds.
The case is being heard by Justice Emeka Nwite, sitting as a vacation judge in Abuja.
The Osun State Government had sued the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF), arguing that disbursing allocations to the sacked officials violated both the law and a subsisting court order.
Pending determination of the matter, the state obtained an interim order that the status quo should be maintained.
However, Osun’s counsel, Musibau Adetunbi, SAN, alleged in court on Monday, September 29, 2025, that the funds had already been released through a special account opened at United Bank for Africa (UBA).
He said the state government had to approach an Oyo State High Court to obtain a restraining order against UBA, citing the strike in Osun State courts as the reason for seeking relief in Ibadan.
Counsel for the CBN and AGF, Murtala Abdulrasheed and Tajudeen Oladoja, both SANs, strongly denied the allegation, describing it as “rumour” without documentary evidence.
They urged the court to discountenance the claims and proceed with the hearing of their motion challenging the court’s jurisdiction to continue with the case.
The defence lawyers also asked the court not to grant adjournment requests from the plaintiff, warning that time was running out as the tenure of the disputed APC chairmen and councillors expires on Wednesday, October 22.
A key issue in Monday’s proceedings was whether the case should be heard in Abuja or Osogbo.
Adetunbi argued that the matter should be returned to Osogbo, where it was originally filed, and accused the Chief Judge of the Federal High Court, John Tsoho, of acting in “bad faith” by transferring the case to Abuja on grounds that the defendants are based there.
The defence countered that the transfer was an administrative decision of the Chief Judge and could not be challenged by the plaintiff.
They also noted that the Chief Judge had directed the Abuja division to hear the matter expeditiously.
After hearing arguments from both sides, Justice Nwite fixed Thursday, October 16, 202 for ruling on whether the case will be returned to Osogbo for continuation or remain in Abuja.
