Osun LG Allocations: Calls Mount For Release Of Withheld Funds

Calls have intensified for the Federal Government to release the statutory allocations withheld from the 30 local government areas in Osun State following the recently concluded governorship election.

The development comes after Governor Ademola Adeleke defeated the All Progressives Congress (APC) candidate, Munirudeen Oyebamiji, in the election, with renewed appeals for the councils to receive funds that have reportedly accumulated to more than N250 billion, according to recent Federal Accounts Allocation Committee (FAAC) figures.

The Federal Government withheld the allocations following the February 2025 local government elections in Osun State, which were challenged by the APC.

The state government subsequently approached the court to contest the withholding of the funds.

In its judgment, the Supreme Court faulted the Federal Government's decision to withhold the allocations, describing the action as a grave breach of the 1999 Constitution.

Justice Mohammed Idris, who delivered the lead judgment, held that the Federal Government's decision was unconstitutional and directed that the funds be channelled directly to the accounts of the affected local governments.

The Supreme Court, however, dismissed the suit after ruling that the Osun State Government lacked the legal standing to institute the case on behalf of the local governments.

Despite the dismissal, the court's pronouncement on the withholding of the councils' allocations raised questions over the continued retention of the funds.

Critics of the Federal Government's position have argued that the withholding of the allocations was politically motivated and intended to weaken the Adeleke administration following the disputed local government elections.

They are now urging the Federal Government and the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), to comply with the Supreme Court's position and release the funds to the affected councils.

Supporters of the call argue that the money is urgently needed to sustain essential services and meet financial obligations across the state.

They said the funds would help pay the salaries of primary school teachers, nurses and other healthcare workers operating across the state's 332 primary healthcare centres, as well as local government employees, members of traditional councils and retirees.

The allocations could also be used to address infrastructure needs and improve the delivery of basic services across the 30 local government areas.

With the governorship election now concluded, proponents of the release of the funds contend that continued withholding of the allocations would only affect residents who depend on local government services.

They therefore urged the Federal Government to resolve the legal and administrative issues surrounding the funds and ensure that the affected councils receive their statutory allocations.