The Federal High Court, Abuja, has commenced hearing in a suit filed by the Osun State Government against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) over the disbursement of local government funds.
The case, presided over by Justice Emeka Nwite, saw legal representatives from all parties formally announcing their appearances as the proceedings began.
At the heart of the dispute is Osun State’s allegation that the CBN and the AGF are attempting to divert statutory allocations meant for local governments into private accounts allegedly operated by impostors posing as government officials.
The state government insists such actions would not only violate the Nigerian Constitution and public finance regulations but also compromise transparency and accountability in governance.
According to Osun State, the controversial plan sidelines duly recognized accounting officers and threatens to interfere with ongoing cases before the Supreme Court on the management of local government funds in the state.
The matter is further complicated by a lingering political tussle between the All Progressives Congress (APC) and the Peoples Democratic Party (PDP) over the legitimacy of the October 2022 local government elections.
Conflicting court rulings have left the fate of the elected councils in limbo, fueling tensions around who has the legal authority to control grassroots finances.
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