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LG Funds: Osun Objects Hearing of Suit against CBN, Accountant General by Abuja Vacation Court

LG Funds: Osun Objects Hearing of Suit against CBN, Accountant General by Abuja Vacation Court

*Accuses AGF of fast tracking funds release to sacked APC chairmen

Alex Enumah in Abuja

The Osun State Government on Monday told a Federal High Court in Abuja that it objects to hearing of the suit against the Central Bank of Nigeria (CBN) and two others in respect of funds belonging to the 23 Local Government Area Councils in the state.

The state government in the suit filed by its Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada, maintained that while the Abuja division of the Federal High Court lacked the necessary jurisdiction to hear the suit initiated at the Osogbo division of the Federal High Court, it was wrong for the suit to be heard by a vacation court, since the matter does not require the urgency to qualify for a vacation matter.

Recall that the Osun State Attorney-General who is the plaintiff in the suit had dragged the CBN, Accountant General of the Federation as well as the Attorney-General of the Federation before the Federal High Court in Osogbo, Osun State.

The plaintiff in the suit filed by Musibau Adetunji, SAN, is praying the court to restrain the CBN from opening accounts for the chairmen elected on the platform of the All Progressive Congress (APC) in 2022, whom the state government affirmed have been sacked by the same Federal High Court.

However, the Chief Judge of the Federal High Court, Justice John Tsoho, last month issued a fiat transferring the suit from the Osogbo division to the Abuja division, for expeditious hearing.

When the matter up for mention on Monday, plaintiff’s lawyer informed the court of two motions he filed and already served on the defendants.

In the 1st motion which bordered on jurisdiction, the plaintiff seeks the setting aside of the CJ’s fiat contained in a letter dated August 21, and signed by his Personal Assistant, Joshua Ibrahim.

Plaintiff further prays for the setting aside of the directive that the matter be heard by a vacation judge, adding that the court should decline jurisdiction to hear the matter during its annual vacation and return the case file back to the Osogbo judicial division of the Federal High Court.

While disclosing that the second motion before the court was a Notice for the Discontinuance of the case against the AGF, plaintiff’s lawyer explained that the said motion was, “sequel to the Affidavit of Urgency”, the AGF filed on August 13, 2025.

“It became obvious that he is willing and at the verge of paying the allocation of the Constituent Local Government Councils of the plaintiff’s state to the illegal and sacked APC Chairmen and Councilors”, Adetunbi said.

“Consequent on the above, the plaintiff is desirous of initiating and prosecuting a fresh suit against the 3rd defendant (AGF) at the Supreme Court of Nigeria.

“That, some of the facts, questions and issues to be tabled at the apex court against the AGF would be identical to the facts, questions and issues before the trial court in the instant suit and hence, the need to discontinue the suit against him”, the senior lawyer added.

Meanwhile, the plaintiff has prayed the court for an order staying further proceedings in the suit pending the hearing and determination of the suit numbered SC/CV/773/2025 between the Attorney General of Osun State and the AGF at the Supreme Court.

One of the grounds of the motion is that “the AGF is not willing to obey, abide by or comply with valid and subsisting decision of the Court of Appeal but rather caused an affidavit of urgency to be filed before the court on August 13.”

Adetunbi argued that the AGF’s letter of August 26 and the affidavit of urgency show that he is willing and at the verge of paying the allocation of the Constituents Local Government Councils of the plaintiff state to illegal and sacked APC Chairmen and Councilors.

He added that, “the brazen decision of the AGF necessitated him to approach the Supreme Court to determine the propriety or otherwise of the federation’s action in paying statutory allocation of the Local Government Councils in Osun state to officials of the APC, who have been removed from office by a subsisting judgment of the trial court which was affirmed by the Court of Appeal in view of the position of the AGF in the affidavit of urgency that the purported APC elected Chairmen and Councilors are the ones running the affairs of the Local Government Councils in Osun and will be paid the said allocation, among others.”

Responding, Chief Akin Olujimi, SAN, who represented the AGF, informed the court that he was yet to be served with the Notice of Discontinuance.

He however, pointed out that even if the notice was duly served on him, it could not stop the proceedings of the day until the court made an order to that effect, adding that such notice must be attached with an affidavit of service.

In his own response, CBN’s lawyer, Murtala Abdulrasheed, SAN informed the court that the AGF wrote to the Chief Judge for the matter to be heard expeditiously by a vacation judge.

He told the Court that the first defendant filed seven processes challenging the plaintiff’s motion for stay of proceedings, and against the motion challenging the administrative power of the CJ to transfer the matter from Osun to Abuja Division of the Federal High Court, among others.

On his part, counsel to the Accountant General of the Federation, Tajudeen Oladoja, SAN said, if the matter is not heard during the court’s vacation, it would become an academic exercise and prayed the court to hear all the processes filed in the matter together.

After listening to the submissions of counsel in the matter, the trial Judge, Justice Emeka Nwite adjourned the case till September 22, 2025 for hearing of all the applications filed in the matter.

The suit, which was filed on behalf of Osun State by the state Attorney General, Oluwole Jimi-Bada, seeks to restrain the CBN and the AGF from opening and maintaining accounts for the local government chairmen elected in October 2022 under the APC.

The chairmen in question were elected in an election that only featured candidates from the APC.

Specifically, the plaintiff wants “an interim injunction restraining the defendants from opening, operating, or maintaining local government accounts in favour of the Chairmen and Councillors who have been sacked or removed from office by a subsisting judgment of the Federal High Court.”

Another relief seeks to restrain the CBN and Accountant General of the Federation “from disbursing allocations to the sacked APC Chairmen and Councillors.”

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*Accuses AGF of fast tracking funds release to sacked APC chairmen Alex Enumah in Abuja The Osun State Government on Monday told a Federal High Court in Abuja that it
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Abbas, Edun Disagree Over Nigeria’s Rising Debt Profile

Abbas, Edun Disagree Over Nigeria’s Rising Debt Profile

Juliet Akoje In Abuja

The Nigeria’s Finance Minister, Wale Edun, and the Speaker of the House of Representatives, Abbas Tajudeen disagreed over the country’s debt profile on Monday.

While Speaker Abbas raised concern about Nigeria’s escalating debt, stating it reached N149.39 trillion (approximately $97 billion) in the first quarter of 2025, from N121.7 trillion the previous year, Minister Edun remained upbeat, arguing that the country’s debt outlook was becoming more manageable.

Abbas cautioned that Nigeria’s debt-to-GDP ratio had hit 52 per cent, exceeding the legal ceiling of 40 per cent and called on parliaments throughout West Africa to intensify their scrutiny of government borrowing to protect their citizens’ future.

The two top officials delivered their remarks at the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), hosted by Nigeria’s House Public Accounts Committee, under the theme: “Strengthening Parliamentary Oversight of Public Debt.”

The National Assembly’s concerns come shortly after it approved President Bola Tinubu’s ambitious external borrowing plan for 2025–2026, which includes $21.19 billion in foreign loans, €4 billion, ¥15 billion, a $65 million grant, and roughly N757 billion in domestic borrowing.

This borrowing plan, endorsed by both the House and Senate Committees on Local and Foreign Debt, also comprises a proposal to raise an additional $2 billion through a foreign-currency bond issued in the domestic market.

Abbas who was represented by House Leader, Prof. Julius Ihonvbere, stated that as of first quarter of 2025, Nigeria’s total public debt stood at N149.39 trillion (about $97 billion), a steep rise from N121.7 trillion in the previous year.

He noted that the debt-to-GDP ratio had soared to 52 per cent, well above the 40 per cent legal threshold.

He warned that this debt escalation had pushed Nigeria beyond its legal borrowing limits and placed considerable strain on its fiscal stability.

Abbas said the trend underscored the pressing need for enhanced parliamentary oversight, improved transparency in the borrowing process, and a unified effort to ensure every borrowed naira delivers measurable economic and social benefits.

He further warned that Africa was facing a continent-wide debt crisis with many nations spending more on debt servicing than they do on essential sectors like healthcare.

Highlighting Africa’s debt composition, Abbas said 35 per cent is owed to private Western lenders, 39 per cent to global financial institutions such as the IMF and World Bank, 13 per cent to bilateral partners, and 12 per cent to China.

The Speaker stressed that loans should be channeled into sectors like infrastructure, healthcare, education, and industries that generate employment, warning against irresponsible borrowing that fuels corruption or unproductive consumption.

He added that oversight efforts must involve the public, suggesting that major loan proposals should be open to public hearings and that debt reports be simplified and made publicly accessible to ensure transparency and citizen awareness.

In contrast, Finance Minister Edun presented a more optimistic assessment, saying Nigeria’s economy is recovering under the reform agenda of President Tinubu.

Edun noted that in 2024, the ratio of debt service to government revenue had declined to about 60 per cent, while the debt-to-GDP ratio had fallen to 38.8 per cent, which he described as acceptable by global standards.

He also said government revenues rose by 34.7 per cent in the first half of 2025, showing signs of fiscal improvement.

Edun acknowledged Nigeria’s shared struggles with other West African nations, including high debt service costs, limited revenue streams, and increasing pressure on public spending.

He argued that Nigeria was making a positive turnaround, with reforms boosting investor confidence, reducing fuel import expenses, enhancing energy independence, and encouraging local value addition.

He credited these gains to difficult but necessary reforms, including the removal of fuel subsidies, exchange rate liberalisation, and a broad tax reform initiative aimed at improving compliance and gradually increasing the tax-to-GDP ratio.

According to Edun, these reforms are laying the groundwork for a stable macroeconomic climate that encourages private sector investment, which constitutes around 90 per cent of the nation’s economy.

He stressed that the government’s borrowing was now targeted at specific projects that generate returns, and said the administration was avoiding inflationary practices like excessive money-printing or unsustainable financing methods.

Edun also pointed to global challenges such as declining development aid, shrinking global trade, and higher international interest rates, which he said complicate fiscal management in developing nations.

He argued that these global constraints make it even more critical for African countries to embrace reforms, digital innovation, and technology-driven revenue systems to boost domestic income.

The minister maintained that parliamentary scrutiny is vital for upholding fiscal responsibility and further urged lawmakers to actively hold the executive accountable for borrowing and spending decisions, asserting that transparency and accountability must form the backbone of fiscal policy.

“A credible fiscal plan isn’t just an executive responsibility, it requires strong collaboration and oversight, especially from finance and public accounts committees like yours.”

He described Nigeria’s current fiscal path as a key inflection point, where recent reforms are paving the way for long-term stability, global competitiveness, and inclusive development.

Edun however concluded by stressing the importance of responsible borrowing, clear reporting, and vigilant legislative oversight to secure the country’s financial future.

The President of the senate, Godswill Akpabio, called for stronger legal frameworks across West Africa to empower finance and public accounts committees, ensuring better debt transparency and sustainability.

Represented by Senator Osita Izunaso, Akpabio warned that unchecked borrowing could endanger citizens’ futures and weaken democratic institutions throughout the region.

He argued that sound debt management, underpinned by rigorous oversight can be a powerful tool to finance infrastructure, spur growth, and support sustainable development.

The House Public Accounts Committee Chairman, Hon. Bamidele Salam, revealed that his committee had recovered more than N200 billion in lost government revenue over the past year.

Salam said these recoveries were part of ongoing reforms to improve financial accountability in Nigeria.

He noted that this WAAPAC meeting which Nigeria is hosting for the first time since the group’s founding in 2009 is particularly timely in light of Africa’s escalating debt crisis.

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Juliet Akoje In Abuja The Nigeria’s Finance Minister, Wale Edun, and the Speaker of the House of Representatives, Abbas Tajudeen disagreed over the country’s debt profile on Monday. While Speaker
The post Abbas, Edun Disagree Over Nigeria’s Rising Debt Profile appeared first on THISDAYLIVE.