The Osun State Government has strongly opposed a request by the Federal Government demanding the refund of seven months’ local government (LG) allocations previously disbursed to the state.
The demand was included in a defence filed by the Attorney General of the Federation (AGF), Lateef Fagbemi (SAN), in response to a lawsuit brought by the Osun State Government before the Supreme Court.
Osun is contesting the FG’s decision to withhold local government funds amidst a political standoff between the ruling Peoples Democratic Party (PDP) and the opposition All Progressives Congress (APC) over control of the councils.
In the AGF’s defence, filed by counsel Chief Akin Olujimi (SAN), the Federal Government asked the Supreme Court to order Osun to return all LG allocations received between July 2024 and February 2025.
Reacting on Saturday, Osun’s Commissioner for Information, Kolapo Alimi, described the demand as “misconceived and mischievous,” accusing the Federal Government of selective enforcement and political bias.
“Why should Osun refund LG allocations while the other 35 states continue to receive theirs into their Joint Local Government Accounts?” Alimi questioned. “This reeks of bad faith toward Osun’s people and government.”
Alimi further alleged that the FG’s stance aims to divert the funds to APC-aligned council officials, instead of those elected under the PDP.
He said the ongoing conflict originated from the Federal Government’s alleged support for sacked APC chairmen and councillors, which led to the suspension of LG allocations since March 2025.
“Previously, allocations were paid through the State Joint LG Account. The FG’s decision to stop Osun’s funds in March forced the state to file Suit No.: SC/CV/379/2025,” he added.
Alimi accused the Federal Government of violating a July 11, 2024 Supreme Court ruling affirming LG financial autonomy. He criticized the AGF’s claim that Osun was in violation of that judgment, calling it a “face-saving argument.”
“Why is the July 11 judgment being enforced solely against Osun?” he asked. “The AGF is not a court and cannot pick which elected officials to recognize or ignore.”
He further claimed the FG had politicized the Supreme Court’s judgment, describing it as a tool for political maneuvering rather than governance.
“The Accountant General of the Federation acted like the Accountant General of the APC by instructing funds be paid to APC chairmen via a letter to the party’s Osogbo secretariat,” Alimi said.
He also questioned the AGF’s impartiality, noting his past legal representation of former Governor Gboyega Oyetola and the APC in the election tribunal case against Governor Ademola Adeleke.
Meanwhile, Saturday PUNCH confirmed that Osun has filed to withdraw its case at the Supreme Court. Olujimi acknowledged the withdrawal but said it would not be considered until the court resumes from its annual recess in September.
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