Osun withdraws suit against CBN, AGF over withheld LG funds

The Osun State Government has withdrawn its suit against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF), Shamsedeen Ogunjimi, over the release of local government funds previously withheld from officials sacked by the court.

The suit, filed to prevent the Federal Government from releasing the funds to chairmen and councillors elected during the administration of former Governor Adegboyega Oyetola, was withdrawn on Friday.

Appearing before the court, the state’s counsel, Musibau Adetumbi (SAN), said the objective of the case — to safeguard the funds — had been overtaken by events, as the money had already been released.

> “On September 29, 2025, I informed the court that our aim was to protect the money. Between then and now, the money has been moved out of the CBN,” Adetumbi said.
“Assuming, without conceding, that the court-sacked APC chairmen and councillors had a tenure, it expired on Wednesday, October 16, 2025.”

Counsel to the defendants, Muritala Abdulrasheed and Tajudeen Oladoja, did not oppose the withdrawal but challenged parts of the plaintiff’s affidavit.

Abdulrasheed described some statements in the affidavit as “damaging” to individuals not joined in the suit and asked the court to strike out paragraphs five to eleven, alleging that the discontinuance was filed “in bad faith.”

Oladoja also argued that the claim that the money had been paid was inaccurate, insisting that the AGF had not been allowed to respond. He demanded ₦10 million in costs, citing wasted time and resources.

In response, Adetumbi maintained that, under the Federal High Court Rules, a notice of discontinuance does not attract costs, noting that the defendants had not filed any processes before the court.

Presiding judge Justice Emeka Nwite adjourned the matter until October 29, 2025, for ruling on the withdrawal and related applications.