BREAKING NEWS: Only LG Chairmen Have Right to Sue Over Local Government Funds – Supreme Court

Judgement Affirms Appeal Court Ruling on February 22 Elections

The Supreme Court has ruled that only local government chairmen elected after the exit of former Governor Gboyega Oyetola have the legal standing to challenge issues relating to Osun State’s local government allocations.

In its landmark decision, the apex court clarified that disputes over LG funds can only be instituted by local government authorities themselves, not by the state government, explaining that such cases must be between the affected LGAs and the Attorney-General of the Federation.

The court noted that the appropriate individuals to file the suit should have been the chairmen elected after the nullification of Oyetola’s controversial local government poll.

It further indicated that those elected in the February 22, 2025 LG election, already sworn in by Governor Ademola Adeleke, are the legally recognized officials empowered to sue or be sued.

By leaning on its earlier judgment prohibiting state governments from controlling LG allocations, the Supreme Court indirectly validated the earlier Court of Appeal verdict, which upheld the mandate of the February 22 chairmen.

The apex court emphasized the autonomy of local governments, stating that the Osun State Attorney-General lacks authority to act on behalf of elected LG leadership.

The 6-1 judgment effectively directs the recognized 2025 chairmen to either pursue the matter themselves or rely on ongoing proceedings to bring the case back before the court.

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Legal experts present at the hearing said the ruling restores the legal position established by the Court of Appeal.

“The Supreme Court has simply clarified the path forward. Those affected are the 2025 elected chairmen, the so-called ‘sit-at-home’ chairmen should have been the ones to bring this case,” a legal analyst noted.

They added that the ruling confirms the legitimacy of the current LG administration and sustains existing orders preventing banks from releasing funds to individuals not legally recognized as chairmen.

Following the judgment, reports indicate that Governor Ademola Adeleke called Hon. Sarafadeen Awotunde, Chairman of Osun ALGON, to congratulate him and other elected LG officials on the apex court’s affirmation.

“Mr Governor congratulated ALGON and said we should rejoice because our mandate has now been confirmed by the Supreme Court,” a chairman present during the call said.

“He urged us to give glory to God, as the court has affirmed Awotunde-led ALGON as the authentic LG leadership.”