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Concerns as FG withholds N216b Osun local council allocations

Osun State Governor, Senator Ademola Adeleke

‘16 months on, grassroots development crippled’

The 30 local councils in Osun State have been without statutory allocations for more than 16 months, crippling grassroots development, following a face-off over council elections.

A review of official revenue-sharing data from the Federation Account Allocation Committee indicates that about N216 billion earmarked for Osun’s 30 local councils was withheld between March 2025 and June 2026.

The figure includes N131.5 billion not released between March and December 2025, and another N85.3 billion withheld between January and June 2026.

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Allocations for July to September 2026 were yet to be determined at the time of filing this report.

According to FAAC documents, Osun’s councils were to receive N11.9 billion in March 2025, N11.2 billion in April, N11.7 billion in May, and N12.1 billion in June.

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The monthly entitlement rose to N12.8 billion in July, N14 billion in August, N14.4 billion in September, N15.8 billion in October, N14.6 billion in November, and N13.09 billion in December, bringing the 10-month total to N131.5 billion.

The seizure extended into 2026, with the councils due N14.06 billion in January, N14.5 billion in February, N12.8 billion in March, N13.7 billion in April, N15.4 billion in May, and N14.9 billion in June, totalling N85.3 billion for the half-year.

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The development has fuelled legal and political tension between the Federal and Osun State governments, with the matter eventually reaching the Supreme Court.

In its lead judgment delivered by Justice Mohammed Idris, the apex court ruled that the action was unconstitutional, describing it as a “grave breach of the 1999 Constitution.”

Justice Idris said “the hand of the Federal Government was soiled” by the decision and ordered that the funds be “directly channelled to local councils’ accounts.”

The court also dismissed contempt claims brought against the Osun State Government by the Attorney-General of the Federation, stating 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 filing the suit without proof that it had obtained the consent of the affected local councils.

“There was no evidence that the Osun Attorney-General was briefed by the local governments,” Justice Idris held.

In a dissenting view, Justice Emmanuel Agim stated that the Osun Attorney-General had the powers to initiate the case, describing the Federal Government’s action as “in bad taste because it was capable of crippling the activities of the councils.”

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