Osun Governor Adeleke Sounds Alarm: Demands Immediate Release of ₦130 Billion Withheld Local Government Funds — What It Means for Democracy and Grassroots Development
In a powerful and widely-broadcast address to the people of Osun State on Monday, 26 January 2026, Governor Senator Nurudeen Ademola Adeleke renewed a forceful call for the immediate release of over ₦130 billion in statutory allocations that he says have been illegally withheld from the state’s local governments by federal authorities. The governor described the ongoing crisis as a grave threat to democratic governance and the socio-economic wellbeing of ordinary citizens at the grassroots level.
This issue has rapidly become one of the most pressing political controversies in Nigeria’s Southwest region, touching on constitutional rights, federal-state relations, governance integrity, and the financial autonomy of local councils. Let’s explore the details, the context, and the broader implications of this drama unfolding in Osun State.
🔍 Background: Local Government Allocations and Crisis in Osun
In Nigeria’s federal system, statutory allocations are funds disbursed from the Federation Account Allocation Committee (FAAC) to state and local governments. These allocations are critical for financing grassroots services such as primary education, healthcare, local infrastructure, staff salaries, pensions, and traditional institutions.
Governor Adeleke’s administration claims these allocations due to Osun’s 30 local government areas have been withheld since February 2025, accumulating to around ₦130 billion not released to the lawful council accounts.
According to the governor:
The blockage is crippling grassroots governance.
Salaries for primary school teachers, nurses, health workers, local council staff, traditional councils, and retirees are at risk without these funds.
Because of the withholding, Adeleke says the state government has been forced to borrow and redirect state funds to cover salaries, a move he calls unsustainable and detrimental to continued service delivery.
⚖️ Roots of the Dispute: Lawful Leadership vs. Occupied Secretariats
Central to the conflict is a political and legal battle over who controls local government secretariats in Osun:
1. Court Decisions:
The Federal High Court in Osogbo (Nov 2022) and the Court of Appeal (Feb & June 2025) nullified the election of certain local government chairmen and councillors affiliated with the All Progressives Congress (APC).
2. Fresh Elections:
New local government elections were held in compliance with these court judgments, and duly elected chairmen and councillors were sworn in on 23 February 2025.
3. Continued Occupation:
Despite judicial rulings, Adeleke alleges that the former APC local government leaders remain in the council secretariats, allegedly with the backing of security agencies, disrupting lawful governance.
4. Governor’s Stance:
Adeleke insisted that “the court removed them, not my administration,” stressing that the occupying officials have no constitutional mandate to hold office.
In his address, the governor framed the crisis as a struggle between constitutional order and “naked impunity”, urging Nigerians and democracy advocates to recognize the stakes involved.
🏛️ Accusations and Institutional Tensions
Governor Adeleke did not stop at the Federal Government. In his address and official statements, he also:
Accused the United Bank for Africa (UBA) of allegedly allowing unauthorized persons to open local government accounts and divert funds — claims he says are under criminal prosecution.
Accused former Governor Gboyega Oyetola of allegedly orchestrating the occupation of council secretariats with police support — a claim that political opponents have denied, calling the governor’s claims misleading.
These allegations have added layers of controversy, with lawyers, political parties, and civic groups weighing in with divergent views — from constitutional critiques to political counterclaims.
📜 Legal Chess Match: Supreme Court Dynamics
Earlier legal efforts by the Osun State Government to compel the Federal Government to release the withheld allocations reached the Supreme Court, but not successfully. In December 2025, the apex court dismissed Osun’s suit, ruling that the state Attorney-General lacked the legal authority to initiate the case on behalf of local governments because local councils are autonomous and capable of pursuing their own legal actions.
This decision has complicated the legal landscape. The Supreme Court’s position underscores that local governments are independent constitutional entities with standing to sue, separate from state governments — adding a constitutional layer to the financial dispute.
💡 What’s at Stake? Socio-Economic Impact
The withholding of these funds has real consequences on the ground:
Salary Disruptions for teachers, nurses, health workers, council staff, and retirees could disrupt essential services in education and healthcare — especially in rural communities where local governments are the primary budget holders.
Development Projects and routine operations of councils have reportedly slowed or stalled.
Public Trust in democratic institutions and fairness of governance systems is under pressure, especially given conflicting political narratives and legal interpretations.
Governor Adeleke has repeatedly warned that grassroots communities are suffering because local governments cannot function effectively without proper funding.
📣 Calls for Intervention
In his broadcast, Adeleke appealed directly to President Bola Ahmed Tinubu to intervene and ensure the release of the withheld funds, although he clarified that the President was not personally involved in the alleged illegality.
He urged Nigerians to see the crisis as a test of democratic values and the rule of law — framing the struggle as not just a fiscal dispute but a defining moment for constitutional governance in the country.
🧠 Broader Implications: Governance and Federalism in Nigeria
This controversy highlights enduring questions about:
Fiscal federalism — how funds are shared and disbursed between federal, state, and local governments.
Local government autonomy — a long-standing debate in Nigeria’s constitutional framework.
Rule of law versus political power — with courts, executive actions, and political parties all asserting competing claims.
The Osun saga could set important precedents for how future allocation disputes are resolved — whether through negotiation, intervention from federal authorities, or further judicial action.
📌 In Summary
Governor Ademola Adeleke’s demand for the immediate release of over ₦130 billion in withheld local government funds has ignited a major political and constitutional dispute in Osun State. With competing claims over legal authority, alleged occupation of council secretariats, and accusations involving financial institutions, the crisis underscores deep-seated challenges in Nigeria’s governance architecture.
As the state and federal governments wrestle for resolution, ordinary citizens — teachers, nurses, council workers, and retirees — face the very real consequences of financial impasse at the grassroots level.
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