The Federal High Court, Abuja, on Monday took up a case instituted by the Osun State Government against the Central Bank of Nigeria, CBN, and the Accountant-General of the Federation, AGF, over alleged plans to divert local government allocations.

The matter, presided over by Justice Emeka Nwite, saw appearances entered by legal representatives of the parties involved.

At the heart of the dispute is the disbursement of local government funds in Osun State. The state government accused the CBN and the AGF of attempting to channel statutory allocations into private accounts allegedly operated by people impersonating government officials.

According to Osun State, such an action would constitute a flagrant breach of public finance laws and provisions of the Nigerian Constitution. It contended that bypassing designated accounting officers would compromise transparency and accountability in public fund management.

The government also warned that the alleged plan directly undermines ongoing legal proceedings before the Supreme Court, which is currently reviewing issues tied to the administration of local government finances in the state.

The case arises from a prolonged political and legal tussle between the Peoples Democratic Party, PDP-led state government and members of the All Progressives Congress, APC, following conflicting court judgments over the validity of the October 2022 local government elections.

The court has yet to make a ruling as proceedings continue.

Court hears Osun Govt’s suit against CBN, AGF over LG funds