The Federal High Court in Abuja, on Monday, heard a lawsuit filed by the Osun State Government against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF).
Justice Emeka Nwite presided as lawyers for all parties announced their appearances in the high-stakes case.
At the heart of the dispute is the disbursement of local government allocations. The Osun State Government accuses the CBN and the AGF of plotting to divert funds intended for local governments into private accounts—a move it describes as a blatant violation of public finance laws and the Nigerian Constitution.
According to court filings, the state alleged that the apex bank and AGF intended to channel local government allocations into accounts operated by individuals impersonating legitimate officials, bypassing recognized accounting officers.
The Osun Government further argued that such actions would undermine pending legal battles before the Supreme Court concerning the control and administration of local government funds.
The case also highlights deepening political tensions, rooted in a tussle between officials of the Peoples Democratic Party (PDP) and the All Progressives Congress (APC) over the legitimacy of the October 2022 local government elections, which remain mired in conflicting court rulings.
The matter has now become a test case for accountability, transparency, and the rule of law in the management of grassroots funds.
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