Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Nigerian government has withheld statutory allocations belonging to Osun State's 30 local government areas for more than 16 months, with the accumulated funds now totaling approximately ₦216 billion, according to an analysis of official revenue allocation documents produced by the Federal Accounts Allocation Committee. The withholding began in March 2025, shortly after local government elections were held in Osun in February 2025. The election was challenged by the All Progressives Congress, triggering a prolonged legal and political dispute over the control and administration of the councils.
The ₦216 billion comprises ₦131.5 billion withheld between March and December 2025 and another ₦85.3 billion that was not released between January and June 2026. FAAC records show that Osun's 30 local governments were due to receive ₦11.9 billion in March 2025, ₦11.2 billion in April, ₦11.7 billion in May and ₦12.1 billion in June. The allocation increased to ₦12.8 billion in July, ₦14 billion in August, ₦14.4 billion in September, ₦15.8 billion in October, ₦14.6 billion in November and ₦13.09 billion in December. The withholding continued into 2026, with the councils due ₦14.06 billion in January, ₦14.5 billion in February, ₦12.8 billion in March, ₦13.7 billion in April, ₦15.4 billion in May and ₦14.9 billion in June. The allocations withheld between July and September 2026 had not been ascertained as of the time of filing this report.
The legality of the decision was eventually considered by the Supreme Court, which held that withholding the allocations was unconstitutional. In the lead judgment delivered by Justice Mohammed Idris, the apex court described the seizure of the allocations as a "grave breach of the 1999 Constitution". Justice Idris further held that "the hand of the federal government was soiled" by the decision to withhold the funds and directed that the allocations should be "directly channeled to local accounts". The court also rejected contempt allegations filed against the Osun State Government by the Attorney-General of the Federation, holding that he was "in more contempt than Osun by not paying the fund as required by law". However, the Supreme Court faulted the Osun State Government for instituting the case without demonstrating that it had obtained the consent of the affected local governments. In a dissenting opinion, Justice Emmanuel Agim maintained that the Osun Attorney-General had the authority to institute the action, describing the Federal Government's conduct as "in bad taste because it was capable of crippling the activities of the Councils".
Governor Ademola Adeleke has repeatedly appealed to President Bola Tinubu to intervene and order the release of the funds. In a state broadcast in January 2026, Adeleke said the allocations are the primary source of remuneration for primary school teachers, nurses, and other health workers at the 332 health care centres in Osun, as well as for local government workers, traditional councils, and retirees. He said his government had been borrowing from the state government to pay the salaries of these workers over the last almost 12 months. "To raise the funds from the state government, many sacrifices had to be made. Allowances due to senior civil servants and political appointees had to be put on hold, causing great discomfort to these men and women and slowing some of the state's ongoing projects," he said. The governor said it is not sustainable to continue borrowing funds from the state to pay LG workers.
The dispute has drawn condemnation from civil society organisations, student groups, and traditional rulers. The National Association of Nigerian Students urged Tinubu to release the withheld allocations, claiming that available public records indicated that more than ₦200 billion in statutory allocations had accumulated as withheld funds by the middle of 2026. The Ataoja of Osogbo Land, Oba Jimoh Olanipekun Larooye II, also appealed to the President to release the funds. The Movement for Credible Elections condemned the withholding as "unlawful and morally indefensible", calling on the Federal Government to release the funds without conditions. The African Democratic Congress described the freezing of the funds as "political terrorism", warning that essential services had become casualties of partisan rivalry. The Osun State Government has maintained that it is committed to the rule of law, peaceful governance and the protection of grassroots democracy, but will not accept federal intimidation or the conversion of expired mandates into perpetual entitlements.
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