We Won’t Refund Council Funds, Demand Fraught with Political Bias, Osun State Replies FG

The Osun State Government has strongly opposed the Federal Government’s request for a refund of seven months’ local government allocations, describing the demand as politically motivated and unjust.

‎The controversy stems from an ongoing legal battle at the Supreme Court, where Osun is challenging the Federal Government’s decision to withhold statutory local government funds. In its defence, filed by the Attorney General of the Federation (AGF), Lateef Fagbemi (SAN), through counsel Chief Akin Olujimi (SAN), the Federal Government is seeking a court order compelling Osun to refund all allocations received between July 2024 and February 2025.

‎Reacting in a statement issued on Saturday, Osun’s Commissioner for Information, Kolapo Alimi, condemned the demand as “misconceived and mischievous,” questioning why only Osun is being asked to make a refund while other states continue to receive theirs without hindrance.

‎“This selective treatment reeks of bias and targeted hostility against Osun State,” Alimi said, accusing the Federal Government of acting in favour of All Progressives Congress (APC)-backed local government officials who were removed following the Peoples Democratic Party’s (PDP) victory in the state.

‎He argued that funds were previously disbursed via the State Joint Local Government Account, in line with established procedures, until March 2025, when payments were halted allegedly to pressure the state into recognising the sacked APC council officials.

Alimi also alleged that the Federal Government is violating a July 11, 2024, Supreme Court ruling affirming local government financial autonomy by enforcing it selectively.

“Why is Osun the only state facing this form of enforcement? The AGF cannot serve as both lawmaker and judge in deciding which elected local officials are legitimate,” Alimi asserted.

He further alleged political interference, noting the AGF’s prior legal representation of former Governor Gboyega Oyetola and the APC in the 2023 gubernatorial election dispute as a potential source of bias.

While the Osun government has filed a motion to withdraw its suit against the Federal Government, the Supreme Court is not expected to consider the request until after its annual recess, which ends in September.