The Osun State Government has withdrawn its lawsuit against the Central Bank of Nigeria (CBN) and the Accountant‑General of the Federation (AGF) in the Federal High Court, Abuja. Counsel Musibau Adetumbi explained that the case became moot after the defendants moved the disputed allocation out of the CBN, rendering the suit unnecessary. The action, originally filed by the Osun Attorney General on behalf of the state, sought to protect local‑government funds that had been withheld and to stop the Federal Government from releasing them to sacked chairmen and councillors elected during former Governor Adegboyega Oyetola’s tenure.
On 22 September, the court removed the Attorney‑General of the Federation from the suit because a similar matter was already pending before the Supreme Court. During a hearing on 29 September, Adetumbi reiterated that the primary objective was to safeguard the money, but noted that the funds had been transferred out of the CBN despite the court’s order of status quo. Accordingly, a notice of discontinuance was filed under Order 51 Rule 2 of the Federal High Court Rules, with Adetumbi arguing that any further argument would be merely academic.
CBN lawyer Muritala Abdulrasheed and AGF lawyer Tajudeen Oladoja did not oppose the discontinuance application, but they contested the factual affidavit attached to it. Abdulrasheed claimed the plaintiff’s depositions were damaging and could affect non‑parties, urging the court to delete certain paragraphs he deemed inaccurate. Oladoja objected to the basis of the discontinuance notice, asserting that the plaintiff was not required to provide such grounds, and he sought a N10 million cost order against the plaintiff for wasting judicial time. Adetumbi responded that a notice of discontinuance under the applicable rules does not attract costs and that the defendants had not filed any processes in the court.
The matter has been adjourned to 29 October for the court to rule on the plaintiff’s discontinuance application and the defendants’ other applications. This development follows a prior ruling in which the judge dismissed the CBN’s and AGF’s objection, confirming that the state’s Attorney General had the legal right to sue on behalf of the local‑government authorities.
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