In a split decision of six Justice to one, the Supreme Court on Friday struck out a suit filed by the Attorney General of Osun State against the Attorney General of the Federation (AGF), in relation to the dispute over the withheld allocations due to local governments in the state.
 
The Supreme Court held that the Osun State Attorney General and Commissioner for Justice has no legal right to have instituted the case on behalf of the 30 local governments in the state. 
 
The court held that those who won the local government election, having been inaugurated, are the jurisdiction persons that can sue and be sued directly.

It held that the Federal Government was wrong in withholding the local government fund, adding that the action was in grave breach of the 1999 Constitution.

Justice Mohammed Baba Idris, who read the lead judgment, said the hand of the Federal Government was soiled in its decision to unjustly seize the fund and admonished it to strictly ensure that the funds are directly channeled to local government accounts. 
 
The court dismissed AGF’s contempt allegations against Osun State, adding that he was in more contempt than Osun by not paying the fund as required by law. 
 
Justice Idris, however, held that since there was no evidence that Osun Attorney General was briefed by the local governments, he ought not to have filed the case on their behalf. 
 
In a minority judgment, Justice Emmanuel Akomaye Agim disagreed with the six other justices, holding that Osun Attorney General has the right to institute the case. 
 
Justice Agim said that the action of the Federal Government in withholding the local government funds was in bad taste because it was capable of crippling the activities of the councils.