When Will FG Release Osun LG Funds?

Is the All Progressives Congress-led federal government withholding the Osun State local governments’ allocations to give the party an edge ahead of the August governorship election in the state? Davidson Iriekpen asks

Osun State Governor, Ademola Adeleke, has again decried the continued withholding of the state’s local governments’ allocations by the federal government, despite a Supreme Court’s directive to the contrary.

In a statewide broadcast last Monday, Adeleke, cried out over the continuous withholding of the over ₦130 billion in statutory allocations due to local governments in the state.

He warned that the withdrawal was severely impacting grassroots governance negatively and causing hardship for workers and residents.

Speaking on the illegal occupation of local government secretariats in the state, the governor stated that court-sacked All Progressives Congress (APC) chairmen and councillors have unlawfully held onto council offices for almost a year, despite Federal High Court judgments in November 2022 and subsequent affirmations by the Court of Appeal in February and June 2025 nullifying their elections.

“The court removed them, not my administration,” the governor said, stressing that fresh local government elections were conducted in compliance with subsisting court orders, leading to the swearing-in of duly elected chairmen and councillors on February 23, 2025.

Since the elections, however, he said the federal government has withheld funds due to them from the Federation Account following an appeal by the APC. This has exacerbated poverty in the state.

APC had, on its part, accused Governor Adeleke of violating his oath of office by conducting the polls and colluding with his party to disrupt peace by refusing to comply with the February 10, 2025, Court of Appeal ruling that ordered the reinstatement of the sacked elected local government officials.

The state government and the PDP, however, countered the APC’s argument, citing a case the APC lost at the same Federal High Court, the appeal which was dismissed by the Court of Appeal on January 13, 2025, for lack of diligent prosecution. They added that the state Independent Electoral Commission conducted another election on February 21, 2025, where a new set of LG officials emerged.

Attempts by the state government to recover the seized funds through the Supreme Court have been rebuffed by the APC-led federal government. Though in a split decision of six justices to one, the apex court ruled that the state Attorney General and Commissioner for Justice lacked the legal right to institute the suit on behalf of the local governments, it, however, noted that the federal government was wrong in withholding the funds, which it said is a breach of the 1999 Constitution.

Justice Mohammed Baba-Idris, who delivered the lead majority judgment, urged the federal government to ensure that the funds are directly released to the local governments’ accounts.

“Refusal to release the funds is a clear misuse of power by the defendant, and it is a clear disobedience to the court’s order that funds should be paid only to a democratically elected government,” he declared.

The court dismissed the AGF’s contempt allegations against the state, adding that he was in more contempt than the state by not paying the funds as required by law.

In a minority judgment, Justice Emmanuel Agim disagreed with the six other justices, holding that the state Attorney General has the right to institute the case. He said that the action of the federal government in withholding the local governments’ funds was in bad taste because it was capable of crippling the activities of the councils.

Despite the directive of the Supreme Court, the APC-led federal government has failed to release the withheld funds, arguing that since the court struck out the case, the judgment was in its favour.

While the parties were caught in the exchange of words, many believe that the federal government’s decision contrasts sharply with its inaction in Edo State, where, despite the sack of democratically-elected local government executives by the APC-led state government, LG allocations continue to flow.

This has led to allegations of double standards against the APC-led federal government, which was also accused of bias, hypocrisy and inconsistency.

Recall that shortly after assuming office, Governor Monday Okpebholo, acting on the advice of the Edo State House of Assembly, suspended all 18 local government chairmen and their deputies for what was supposed to be two months over alleged insubordination. The suspension has remained indefinite.

Ironically, among the first to react was the Attorney General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, who declared the action illegal and unconstitutional.

Speaking in Abuja on December 19, 2024, the AGF stated that the actions of the Edo State government violated the autonomy granted to LGAs by the Supreme Court’s landmark judgment of July 11, 2024.

“One thing that I know and can say without fear is that under the present dispensation, no governor has the right to remove any local government chairman. That much I know. If I did not know before, since July 11, 2024, I became aware that removal of any local government chairman or official would be the prerogative of that local government, through their legislative house,” the AGF stated.

However, the state government berated the AGF, saying that Governor Okpebholo and the state assembly had the power to remove local government officials from office.

The question agitating the minds of many Nigerians is: Why did the APC-led federal government seize the statutory allocations of Osun LGAs and allow those of Edo State, which are being run by non-democratically elected officials?

The Osun situation is compounded by the governorship election due in the state in August 2026. Many believe the seizure of the funds was meant to cripple the state and unseat Governor Adeleke who recently defected from the PDP to the Accord Party and give undue advantage to the APC to take over the state.

Governor Adeleke had accused  the former governor of the state and incumbent Minister of Marine and Blue Economy, Gboyega Oyetola, of undermining democracy and the rule of law. He added that the funds were critical for the payment of salaries of primary school teachers, nurses, health workers in 332 primary health care centres, council workers, traditional councils, and retirees.

According to him, the state government had to look for funds and make painful sacrifices to keep salaries paid for almost 12 months, a situation he described as unsustainable.

“Governance is about humanity, responsibility, and compassion, but this burden cannot continue indefinitely,” he said.

The governor described the current occupation of the local government secretariats by impostors acting without any lawful mandate as illegal.

He also alleged that local government workers trying to resume duty were harassed and intimidated by armed police officers and political thugs.

Adeleke appealed to President Bola Tinubu to ensure the release of the withheld funds and to protect democratic institutions.  The governor who insisted that the president was not involved in the illegality,  urged him to rescue Osun’s local governments from an unlawful siege. He appealed to Nigerians and pro-democracy advocates to demand an immediate end to the illegality.

What is happening to Osun State is a mockery of democracy, and should not be allowed to continue.

What is more worrisome is that it is happening under the watch of President Tinubu who as governor of Lagos State fought vigorously and vehemently when President Olusegun Obasanjo seized the state’s local government allocations illegally.