The Federal Government has withheld a total of ₦201.962 billion in statutory allocations meant for the 30 local government councils in Osun State over a 15-month period, despite a Supreme Court judgment declaring the action unconstitutional.
A review of records from the Federal Accounts Allocation Committee (FAAC) showed that the withheld allocations covered the period from March 2025 to May 2026, with ₦131.5 billion withheld between March and December 2025 and an additional ₦70.462 billion withheld between January and May 2026.
The FAAC records indicated that Osun’s local governments were due to receive ₦11.9 billion in March 2025, ₦11.2 billion in April, ₦11.7 billion in May, ₦12.1 billion in June, ₦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, bringing the total withheld in 2025 to ₦131.5 billion.
The withholding continued in 2026, with ₦14.060 billion withheld in January, ₦14.502 billion in February, ₦12.8 billion in March, ₦13.7 billion in April and ₦15.4 billion in May, amounting to ₦70.462 billion within the first five months of the year.
The dispute followed the February 2025 local government elections in Osun State, which were challenged by the All Progressives Congress (APC). Following the election, the Federal Government withheld the statutory allocations due to the councils.
The legality of the decision was later challenged before the Supreme Court, which ruled that withholding the allocations was unconstitutional.
Delivering the lead judgment, Justice Mohammed Idris described the action as “a grave breach of the 1999 Constitution,” adding that “the hand of the federal government was soiled” by the decision to withhold the allocations. The court subsequently ordered that the funds be paid directly into the accounts of the affected local governments.
The apex court also dismissed contempt proceedings filed by the Attorney-General of the Federation against the Osun State Government, holding that the Attorney-General was “in more contempt than Osun by not paying the fund as required by law.”
However, the court faulted the Osun State Government for instituting the suit without first demonstrating that it had obtained the consent of the affected local governments.
In a dissenting judgment, Justice Emmanuel Agim held that the Osun State Attorney-General had the legal authority to institute the case and described the Federal Government’s conduct as “in bad taste because it was capable of crippling the activities of the councils.”
The controversy has also led to separate legal proceedings. In September 2025, the Oyo State High Court granted an interim injunction restraining United Bank for Africa (UBA) Plc from releasing statutory allocations belonging to Osun’s 30 local government councils pending the determination of a substantive suit.
The matter has equally sparked public protests. In March, residents staged demonstrations at UBA branches in Osogbo and Ilesa, accusing the bank of complicity in the continued withholding of the councils’ allocations.
Osun State Governor Ademola Adeleke has maintained that the withheld funds are needed to pay the salaries of primary school teachers, nurses, other healthcare workers across the state’s 332 primary healthcare centres, local government workers, traditional council members and retirees.
While the Osun State Government has accused the APC of influencing the continued withholding of the allocations, the opposition party has denied the allegation, insisting that the February 2025 local government election was not properly conducted, a claim the state government continues to reject.
