Hijack of N300bn Osun LG Funds Delaying Projects — Governor Adeleke

Published on 17 April 2026 at 05:43

Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.

Governor Ademola Adeleke of Osun State has said delays in several ongoing infrastructure projects across the state are being caused by his administration’s inability to access about N300 billion in local government funds, which he alleged have been “hijacked” in a political and legal dispute involving sacked council officials.

The governor made the remarks during a review session on state projects with senior government officials and contractors handling road construction and other infrastructure developments across different parts of Osun State.

According to Adeleke, the situation has created serious financial pressure on the state government, forcing it to take on responsibilities that ordinarily fall under local government administration. He said these include payment of salaries for primary school teachers, healthcare workers, pensioners, and other grassroots-level workers whose funding is typically tied to local government allocations.

He explained that the alleged diversion or withholding of local government funds, estimated at about N300 billion, has significantly affected the state’s cash flow and slowed down the pace of capital projects. He linked the situation to ongoing disputes involving court-sacked local government chairmen and political actors in the state.

Adeleke stated that despite the challenges, his administration has continued to prioritise essential services to prevent disruptions at the grassroots level. He said the government chose to step in with state resources to ensure that education, healthcare, and basic administrative functions did not collapse while the dispute remains unresolved.

The governor further noted that several major infrastructure projects across Osun, including road dualisation, bridge construction, and rehabilitation works in towns such as Osogbo, Ile-Ife, Iwo, and Ila Orangun, have been affected by funding constraints arising from the ongoing local government crisis.

He directed contractors handling state projects to maintain momentum and ensure that work continues despite financial limitations, expressing optimism that the projects would eventually be completed and improve economic activity and transportation within the state.

Adeleke also accused opposition elements in the state of contributing to the crisis by allegedly frustrating the smooth operation of local government administration through legal and political actions. He argued that the resulting confusion over control of local government structures has made it difficult for councils to function effectively.

The dispute over local government leadership and funding in Osun State has been a long-running issue involving competing political interests and court rulings. It has led to uncertainty over who controls local council administration and how statutory allocations should be managed, creating tension between the state government and opposition figures.

Opposition leaders in the state have previously denied allegations of financial interference, insisting that due legal processes must be followed in determining the legitimacy of local government officials. They have also accused the state government of attempting to take over council resources without proper constitutional backing.

The ongoing disagreement has had wider implications for governance at the grassroots level, with concerns raised about the impact on development projects, service delivery, and the welfare of residents who depend on local government structures for essential services.

Despite the challenges, Adeleke reaffirmed his administration’s commitment to continuing development efforts across the state. He said the government remains focused on delivering infrastructure projects that will improve connectivity, stimulate economic activity, and enhance living conditions for residents.

He also reiterated that his administration will continue to prioritise the welfare of workers and the maintenance of basic services, even under constrained financial conditions caused by the unresolved dispute over local government funds.

The situation remains a key political and administrative issue in Osun State, with both sides maintaining conflicting positions on the control and management of local government resources and the impact on ongoing development efforts.

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