The Federal High Court on Monday took up a case instituted by the Osun State Government against the Central Bank of Nigeria and the Accountant-General of the Federation.The matter was heard before Justice Emeka Nwite, with all parties announcing their appearances.
At the heart of the dispute between the Osun State Government and the apex bank is the disbursement of local government allocations.
The state government alleged that the CBN and the Office of the Accountant-General of the Federation are attempting to divert funds intended for local governments into private accounts, describing it as a clear breach of public finance regulations and the Nigerian Constitution.
According to the Osun State Government, the CBN and AGF plan to channel local government allocations into private accounts controlled by individuals posing as government officials, bypassing the role of designated accounting officers.
The government further contended that such a move would undermine ongoing legal matters at the Supreme Court concerning the management of local government funds in the state.
The dispute traces back to a political standoff between elected officials of the All Progressives Congress (APC) and the Peoples Democratic Party (PDP), following conflicting judicial rulings on the validity of the October 2022 local government elections.