By Newspot Nigeria News Desk
The Supreme Court on Thursday, December 5, 2025, ruled that only democratically elected Local Government Councils (LGCs), not state governments, have the constitutional authority to sue the Federal Government over withheld local government allocations. This is a landmark development that reshapes the legal and political landscape of local government administration in Osun State
Delivering a 6–1 split decision, the apex court struck out the suit filed by the Osun State Attorney General seeking to compel the Attorney General of the Federation and the Central Bank of Nigeria to release LG funds. The Court held unequivocally that the Osun Attorney General lacked locus standi, noting that LGAs are autonomous constitutional entities capable of suing and being sued in their own name.
The ruling reinforces the Supreme Court’s earlier July 11, 2024 judgment granting full fiscal autonomy to Nigeria’s 774 LGAs and outlawing state interference through Joint Allocation Accounts. In its pronouncement, the Court reminded the Federal Government of its binding obligation to pay LG allocations directly to local councils, not through state governments or unelected caretakers.
2025 Elected Chairmen Emerge as the Only Legitimate LG Authorities in Osun
Though the Court did not mention individuals by name, the legal implications are unmistakable. With the 2022 Oyetola-era local government elections nullified by the Federal High Court and never restored by any appellate court, and with the February 22, 2025 local government elections upheld by the Court of Appeal on June 13, 2025, the only legally recognized local government leadership in Osun today consists of the 2025 elected chairmen and councillors.
This means that only the February 22, 2025 councils, inaugurated under Governor Ademola Adeleke, possess the constitutional standing to challenge the withholding of LG allocations.
Legal analysts at the Supreme Court noted that the decision effectively confirms the Court of Appeal’s recognition of the 2025 councils, clears lingering political ambiguities, and extinguishes any remaining claim by the sacked Oyetola-era chairmen, often referred to as “Yes/No chairmen.”
What Happens Next?
With the Osun State Government removed as a party capable of litigating on behalf of LGAs, the Supreme Court has made it clear that the ball now rests in the court of the 2025 elected ALGON leadership, headed by Hon. Sarafadeen Awotunde (Spain).
The newly affirmed ALGON has two strategic options:
- File a fresh suit directly against the Attorney General of the Federation, asserting their right to direct federal allocations; or
- Join ongoing suits or reactivate pending matters in which LG autonomy is at issue.
Whichever route they choose, the apex court’s decision grants them undisputed constitutional legitimacy and resets the entire LG-autonomy dispute on a clearer legal foundation.
A Major Boost for Grassroots Democracy
Governor Ademola Adeleke was reported to have congratulated the council leadership shortly after the judgment. The decision strengthens his administration’s position that only elected councils, not caretaker committees or nullified officeholders, are entitled to manage local government affairs and finances in Osun.
With today’s ruling, the Supreme Court has reaffirmed a fundamental constitutional principle: Local governments are not administrative departments of state governors, they are self-governing units with constitutional rights.
For Osun, this judgment closes the door on years of political contention and affirms that the 2025 elected chairmen remain the only legitimate custodians of local governance.
This report is published by Newspot Nigeria, committed to delivering accurate, timely, and constitutionally grounded news for the Nigerian public.
