The Osun State Government has formally withdrawn its lawsuit against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation over the release of local government funds linked to officials removed by the court during former Governor Adegboyega Oyetola’s administration.
At Friday’s hearing, counsel to the state government, Musibau Adetumbi (SAN), informed the Federal High Court that the purpose of the case had been overtaken by events since the funds in question had already been released.
Adetumbi explained that the initial intention of the suit was to safeguard the money pending clarification on its rightful ownership, but circumstances had changed. “Our main concern was to ensure the funds were protected,” he said, noting that even if the tenure of the sacked officials was recognised, it had already expired on October 16, 2025.
Lawyers representing the defendants, Muritala Abdulrasheed and Tajudeen Oladoja, did not object to the state’s decision to discontinue the case. However, they raised concerns about portions of the plaintiff’s affidavit, which they claimed contained damaging and inaccurate statements about individuals not listed as parties in the suit.
Abdulrasheed asked the court to strike out paragraphs five to eleven of the affidavit, describing the grounds for withdrawal as being made in “bad faith.” Oladoja also argued that the claim that the funds had been paid was untrue, stating that the Accountant-General had not been given a chance to formally respond. He further requested N10 million in costs to cover wasted court time and processes.
In response, Adetumbi maintained that under Federal High Court rules, withdrawing a case does not attract costs, particularly since the defendants had not yet filed formal responses before the court.
Presiding Judge, Justice Emeka Nwite, adjourned the matter until October 29, when he is expected to rule on the withdrawal request and other pending applications.
The case originally sought to prevent the release of funds to chairmen and councillors whose elections had been nullified by the court during the previous administration.
