By Correspondent in Abuja.
The Osun State Government has applied to withdraw the suit it filed against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) before the Federal High Court in Abuja over withheld local government allocations.
At the resumed hearing on Friday, the counsel to the state government, Musibau Adetumbi, SAN, informed Justice Emeka Nwite that the case had been overtaken by events.
Adetumbi explained that the essence of the suit,filed to safeguard local government funds allegedly withheld by the Federal Government,had been defeated, as the allocation in question had already been moved out of the CBN by the defendants.
Our correspondent recalls that earlier, the Osun State Attorney-General had instituted the action on behalf of the state government, naming the CBN, AGF, and Attorney-General of the Federation as defendants.
However, on Sept. 22, Justice Nwite struck out the name of the Attorney-General of the Federation after the plaintiff discontinued the case against him, noting that a similar matter was already pending before the Supreme Court.
The suit sought to restrain the Federal Government from releasing local government funds to the sacked chairmen and councillors elected during former Governor Adegboyega Oyetola’s administration.
“On September 29, 2025, when the matter was heard, I informed the court that our main objective was to safeguard the money,” Adetumbi said. “Between then and now, notwithstanding the pending status quo order, the funds were moved out of the CBN.”
He said the notice of discontinuance was filed pursuant to Order 51 Rule 2 of the Federal High Court Rules, adding that any further arguments would amount to a mere academic exercise.
The Counsel to the CBN, Muritala Abdulrasheed, SAN, and to the AGF, Tajudeen Oladoja, SAN, did not oppose the withdrawal application but they objected to certain depositions contained in the plaintiff’s supporting affidavit.
Muritala argued that the affidavit contained “damaging” statements against individuals who were not parties to the case and should therefore be withdrawn alongside the notice of discontinuance.
“Anyone can apply for a Certified True Copy (CTC) of the affidavit and use it against the persons mentioned, who are not before the court,” he said, describing the grounds of discontinuance as being made in bad faith.
He further maintained that contrary to the plaintiff’s claim, the CBN had filed a competent 12-paragraph counter-affidavit to the originating summons in May, and therefore urged the court to expunge paragraphs 5 to 11 of the plaintiff’s affidavit.
Similarly, AGF’s counsel, Oladoja, while conceding that the plaintiff had the right to withdraw the suit, opposed the grounds relied upon, arguing that the plaintiff was wrong to allege that the AGF had no competent defence, urging the court to strike out those grounds and to award a ₦10 million cost against the Osun Government for wasting judicial time.
In response, Adetumbi maintained that under Order 50 Rule 2 of the Federal High Court Rules, a notice of discontinuance does not attract cost,insisting that the defendants were not entitled to any compensation since they had defaulted in filing their processes within time.
Justice Nwite adjourned the matter to October 29 for ruling on the plaintiff’s withdrawal application and the accompanying requests by the defendants.
Our also recalls that the judge, in a ruling on Thursday, dismissed the preliminary objection by the CBN and AGF, affirming that the Osun State Attorney-General had the locus standi to institute the suit on behalf of local government authorities.
Edited by Dada Ahmed.
