FG to States: Hands Off LG Funds, Supreme Court Ruling Must Stand
The Federal Government has reiterated that no state government has the legal authority to collect or manage funds meant for local government areas (LGAs). In a firm response to Osun State’s legal action, the FG maintained that all allocations from the Federation Account must be paid directly to LGAs, in strict compliance with an earlier Supreme Court judgment.
The FG’s affidavit, filed at the apex court, accused Osun State of unlawfully collecting LG funds between July 2024 and February 2025. It urged the court to dismiss Osun’s case, arguing that only local councils, not states, have the legal right to challenge the withholding of such funds. The FG further requested that Osun be ordered to refund the monies to allow proper disbursement.
This legal standoff underscores the ongoing battle over fiscal autonomy for LGAs. While Osun is pressing for clarity on fund release, the FG insists it is enforcing constitutional provisions and court directives. The outcome may set a decisive precedent for intergovernmental financial relations.
Credit: Blueprint Newspapers
