The Supreme Court of Nigeria has reserved its judgment in the case filed by the Osun State Government against the Federal Government over the alleged withholding of the state’s allocation from the federation account. The legal dispute centers on claims that funds meant for the state were not released as required by law.

During the hearing, legal representatives from both sides presented their arguments before the apex court. Osun’s counsel urged the court to order the immediate release of the funds, insisting that the alleged withholding violates constitutional provisions on revenue sharing. The Federal Government’s lawyers, however, maintained that the allocations were handled in line with due process.

The presiding justices, after listening to the submissions, announced that judgment has been reserved to a later date, which will be communicated to the parties involved. The decision is expected to clarify the constitutional powers regarding state allocations and federal financial control.

Observers believe the outcome of this case could have far-reaching implications for fiscal relations between the federal and state governments, especially on how revenue from the federation account is managed and disbursed.