The Osun State Government has filed a notice to withdraw the suit it instituted against the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) at the Federal High Court in Abuja.

Counsel to the state government, Musibau Adetumbi (SAN), told Justice Emeka Nwite that the case had been overtaken by events. He explained that the suit, which was aimed at safeguarding withheld local government funds, had become redundant since the money in question had already been moved out of the CBN by the defendants.

The News Agency of Nigeria (NAN) reports that the Osun Attorney-General had filed the case on behalf of the state government, listing the CBN, the Accountant-General of the Federation, and the Attorney-General of the Federation as defendants.

Justice Nwite had earlier removed the name of the Attorney-General of the Federation from the case on September 22, after the plaintiff discontinued the suit against him, noting that a similar case was already before the Supreme Court.

The suit sought to restrain the Federal Government from releasing withheld local government allocations to sacked chairmen and councillors elected during the administration of former Governor Adegboyega Oyetola.

Adetumbi, while addressing the court, said, “On September 29, 2025, when the matter was heard, I told the court that our primary aim was to safeguard the money. Between then and now, we are sure that, notwithstanding the pendency of the case and order of status quo, the money was moved out of the CBN.”

He added that the notice of discontinuance was filed pursuant to Order 51 Rule 2 of the Federal High Court Rules and argued that continuing the matter would amount to an academic exercise.

Counsel to the CBN, Muritala Abdulrasheed (SAN), and that of the AGF, Tajudeen Oladoja (SAN), did not oppose the state government’s application to withdraw the suit but disagreed with the contents of an affidavit of facts attached to the application.

Abdulrasheed contended that the plaintiff made “damaging depositions” in the affidavit and should therefore withdraw it along with the notice of discontinuance. He warned that “somebody can approach the court any day with a request for a Certified True Copy (CTC) of the process and may decide to use it against the persons mentioned in the plaintiff’s affidavit of facts.”

He also argued that the reasons cited for the discontinuance were in bad faith, saying the plaintiff’s claim that the CBN had no competent response to the originating summons was incorrect, as a 12-paragraph counter-affidavit had already been filed in May.

Oladoja, counsel to the AGF, did not oppose the withdrawal but faulted parts of the application. “The plaintiff is not under any obligation to predicate his application on any ground,” he said, while urging the court to strike out certain grounds in the discontinuance notice. He also requested a cost of N10 million against the plaintiff for bringing the 2nd defendant to court and for wasting judicial time.

Responding, Adetumbi maintained that a notice of discontinuance under Order 50 Rule 2 of the Federal High Court Rules does not attract costs and insisted that the defendants were not entitled to any compensation, as they had failed to file their processes within time.

Justice Nwite adjourned the matter until October 29 for ruling on the plaintiff’s application for discontinuance and other related applications.

NAN earlier reported that the judge had dismissed objections raised by the CBN and AGF, ruling that the Osun Attorney-General had the legal right to file the suit on behalf of the local government authorities.

The International Monetary Fund (IMF) has omitted Nigeria from the list of sub-Saharan Africa’s fastest-growing economies in its latest Regional Economic Outlook, released on Thursday in Washington DC.

According to the report, Benin, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda are projected to lead economic growth on the continent, driven by reforms and recovery resilience.

“The region has demonstrated remarkable resilience to a series of major shocks over the past several years and features several of the world’s fastest-growing economies,” the IMF stated.

However, the Fund noted that resource-dependent and conflict-affected countries — which include Nigeria — continue to experience slower growth and modest gains in income per capita, averaging just 1 percent annually.

Growth Outlook

The IMF projects sub-Saharan Africa’s economy to expand by 4.1% in 2025, the same rate as in 2024, with only a modest increase expected in 2026.

Although Nigeria was not listed among the fastest-growing economies, the IMF acknowledged recent reform efforts in both Nigeria and Ethiopia, noting that these have contributed to marginal upward revisions in their growth forecasts.

Fiscal Fragility And Debt Concerns

The Fund warned that fiscal fragility remains a major vulnerability across much of the region, particularly among low-income countries.

“While average public debt ratios have stabilised, they remain high. Debt-service burdens — interest payments relative to fiscal revenues — have risen sharply, crowding out key development spending, especially in Kenya and Nigeria,” the IMF said.

Inflation And External Pressures

The IMF noted that although median inflation in sub-Saharan Africa declined from over 6% at the end of 2023 to around 4%, inflation remains in double digits in countries such as Nigeria, Angola, Ethiopia, and Ghana.

It attributed the easing inflation to lower global food and energy prices and tighter monetary policies, while cautioning that inflationary pressures are still significant in large economies.

The Fund also highlighted weak external buffers, revealing that international reserves in roughly one-third of the region fall below the recommended three months of import cover.

In low-income economies, the median level of reserves has dropped to 2.5 months of imports, largely due to foreign exchange interventions aimed at stabilising domestic currencies.

IMF Acknowledges Nigeria’s Policy Shifts

The IMF commended Nigeria’s recent tax and foreign exchange reforms, noting that tighter fiscal and monetary measures have contributed to the decline in inflation.

Nevertheless, it warned that sustained discipline and structural reforms are needed to strengthen growth, rebuild reserves, and ensure fiscal sustainability.

Background:

The report was presented at the 2025 IMF/World Bank Annual Meetings, which brought together policymakers from across the continent to discuss regional stability, debt management, and economic diversification.