Court Rejects CBN and AGF's Challenge in Osun Local Government Funds Case

Table of Contents

• Dismissal of Objection
• Details of the Suit
• Legal Standing
• Court Process and Transfer
• Bias Allegation
• Attorney General's Involvement

Justice Emeka Nwite of the Federal High Court in Abuja has rejected the objection raised by the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) against a lawsuit contesting the withheld funds of the Osun local government.

The lawsuit, initiated by the Attorney-General of Osun State, Oluwole Jimi-Bada, SAN, aims to prevent the Federal Government from disbursing withheld local government allocations to dismissed officials who were elected during the administration of former Governor Adegboyega Oyetola.

Justice Nwite ruled that the Osun Attorney-General possesses the legal standing to file the suit on behalf of the local government authorities.

In his ruling, the judge dismissed the petition from the CBN and AGF requesting the case's dismissal on the grounds that the Osun Attorney-General lacked the legal right to represent the local governments.

He asserted that the plaintiff, as the chief law officer of the state, has the duty and authority to act in the public interest, which includes safeguarding local government allocations.

The judge further concluded that the ongoing lawsuit regarding local government allocations “does not represent an abuse of court process.”

He noted that while concurrent proceedings “may result in unnecessary and duplicative objectives and judicial resources,” there was no evidence indicating that the plaintiff had “misused, distorted, or abused the pursuit of justice.”

He stressed that the plaintiff did not act in “a biased or intentional manner in pursuing the current action.”

However, regarding the transfer of the case from the Osogbo Judicial Division of the court to the Abuja Division by the Chief Judge, Justice Nwite affirmed that the Chief Judge has the discretionary authority to make such a decision.

The judge rejected the motion filed by the Osun State Government seeking to return the case to the Osogbo Division.

Justice Nwite stated that he had thoroughly considered the arguments of both parties and concluded that Section 21(1) of the FHC Act permits a Chief Judge to “at any time or stage of the proceedings before final judgment, either upon the application of any of the parties, transfer any cause or matter before him to any other judge of the court.”

He determined that the application contesting the transfer of the case from the Osogbo Division to the Abuja Division was without merit and dismissed it.

Regarding the bias accusation, the judge ruled that the claim was unfounded and speculative.

He explained that the term “bias” refers to a mindset or inclination that prevents a judge from making an unbiased decision based solely on the law and evidence.

“A mere administrative act by the Chief Judge transferring a case cannot, by any reasonable interpretation, be considered a bias.”

The Osun Attorney-General had filed suit against the CBN, the AGF, and the Attorney-General of the Federation in this matter.

However, Justice Nwite removed the name of the Attorney-General of the Federation from the lawsuit on September 22, after the plaintiff chose to discontinue the case against him, as a similar case was already pending before the Supreme Court.

On the same day, the Osun Government, represented by its lawyer, Musibau Adetumbi, SAN, submitted a motion requesting the transfer of the case back to the Osogbo Division.