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

5 Min Read

Osun govt says purpose of suit defeated as funds already released

• Defendants fault withdrawal grounds, seek sections of affidavit expunged

ATTENTION: Click HERE to join our WhatsApp group and receive News updates directly on your WhatsApp!

• Court to rule October 29 on discontinuance and related applications

The Osun State Government has withdrawn its case against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) over alleged withheld local government funds belonging to chairmen and councillors elected under former Governor Adegboyega Oyetola.

The state’s Attorney-General, through its counsel, Mr. Musibau Adetumbi (SAN), informed the Federal High Court in Abuja on Friday that the suit was being discontinued after the money at the centre of the dispute was moved out of the CBN.

Court Proceedings

Adetumbi, while moving the application, told the court that the notice of discontinuance was filed under Order 51 Rule 2 of the Federal High Court Rules. He argued that continuing the case would amount to an academic exercise since “the primary aim of safeguarding the money had been defeated.”

He said, “On September 29, 2025, when the matter was heard, I told the court that our primary aim was to safeguard the money. Between then and now, we are sure that, notwithstanding the pendency of the case and order of status quo, the money was moved out of the CBN.”

Defence Counsels’ Objections

However, counsel to the CBN, Dr. Muritala Abdulrasheed (SAN), and the AGF’s counsel, Mr. Tajudeen Oladoja (SAN), did not oppose the withdrawal but faulted some averments in the affidavit of facts attached to the plaintiff’s application.

READ ALSO: Funeral Turns Tragic as 14 Year Old Boy Shot Dead by Security Operative in Osun State

Muritala described parts of the affidavit as “damaging,” arguing that they contained depositions against persons not before the court. He urged the court to strike out paragraphs 5 to 11 of the affidavit for being inaccurate.

He further insisted that the plaintiff’s claim that the first defendant had no response to the originating summons was false, saying his client filed a 12-paragraph counter-affidavit in May.

On his part, Oladoja said while the plaintiff had the right to withdraw the case, he opposed the grounds stated in the notice, adding that it was wrong to claim that the 2nd defendant had not defended the matter. He requested N10 million in costs for time and effort expended by the AGF’s office.

Plaintiff’s Reply

Adetumbi countered, arguing that the defendants’ processes were filed out of time and that discontinuance under Order 50 Rule 2 did not attract costs. “They cannot approach the court to ask for cost or expunging any of the grounds in the notice of discontinuance,” he maintained.

Next Steps

After listening to all arguments, Justice Emeka Nwite adjourned the case until October 29, 2025, for ruling on the discontinuance motion and related applications.

Speaking to journalists after the proceedings, Adetumbi said, “We came to court to safeguard the money, and the money has gone. So, what are we arguing over again? It has left their hands.”

He added that the tenure of the “court-sacked” All Progressives Congress (APC) chairmen and councillors had expired on October 16, 2025, meaning “they are no longer in office.”

Earlier in the case, Justice Nwite had ruled that the Osun Attorney-General had the locus standi to institute the suit on behalf of the local government authorities, noting that the AG acted within his constitutional duty to protect state and local government interests.

The judge also clarified that the suit “does not constitute an abuse of court process” and was filed in the public interest.

 

For publication of Press Releases, Statements, and Advert Inquiries, send an email to info@dailyreport.ng
Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *