Osun Government CBN Suit Withdrawal case ends as state cites funds already moved from CBN, rendering the matter overtaken by events

The Osun Government has officially withdrawn its case against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) at the Federal High Court in Abuja, citing that the matter had been overtaken by events.

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Counsel to the state government, Musibau Adetumbi, SAN, informed Justice Emeka Nwite of the decision on Friday, explaining that the suit—filed to safeguard withheld local government funds—had lost its purpose as the allocations had already been moved out of the CBN.

Adetumbi stated, “Our primary aim was to safeguard the money. Between then and now, notwithstanding the court’s order for status quo, the funds were moved from the CBN. Any further argument would now amount to an academic exercise.”

The Osun Attorney General had initiated the suit on behalf of the state government, seeking to restrain the Federal Government from releasing local government allocations to sacked chairmen and councillors from the administration of former Governor Adegboyega Oyetola.

Justice Nwite had earlier struck out the name of the Attorney-General of the Federation from the case in September, noting that a similar matter was already before the Supreme Court.

During Friday’s proceedings, lawyers representing the CBN and the AGF—Muritala Abdulrasheed, SAN, and Tajudeen Oladoja, SAN, respectively—did not oppose the application for discontinuance but challenged the content of the affidavit of facts attached to the notice.

Muritala argued that the plaintiff made “damaging depositions” against persons not joined in the case and urged the court to strike out paragraphs 5 to 11 of the affidavit. He contended that the grounds upon which the withdrawal was based were made in bad faith.

Oladoja, representing the AGF, also objected to parts of the plaintiff’s affidavit, insisting that some claims were inaccurate and that the 2nd defendant had not been given a fair opportunity to respond. He requested the court to impose a ₦10 million cost against the plaintiff for time and expenses incurred.

In response, Adetumbi maintained that under Order 50 Rule 2 of the Federal High Court Rules, a notice of discontinuance does not attract cost, adding that the defendants’ failure to file timely responses disqualified them from such requests.

Justice Nwite adjourned the matter until October 29 for a ruling on the withdrawal application and the counter-requests filed by the defendants.

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The development comes a day after the same court dismissed the objections raised by the CBN and AGF, affirming that the Osun Attorney General had the locus standi—legal right—to represent the local government authorities in the suit.