Osun LG Funds Frozen: Teachers, Nurses & Retirees Suffer 12 Months Without Pay as ₦130bn Held by FG

by Pamela .O

The situation in Osun State regarding the withheld local government allocations is a real and ongoing crisis, rooted in a political and legal dispute over the legitimacy of local council leadership.

This has severely impacted grassroots workers, including primary school teachers, nurses, health workers, council staff, and retirees, who rely on these funds for salaries and pensions.

The core issue stems from local government elections:

– In October 2022 (under the previous APC administration of Gboyega Oyetola), elections were held, but those councils were later dissolved or challenged.

– Governor Ademola Adeleke (PDP) conducted fresh elections on February 22/23, 2025, inaugurating new chairmen and councillors aligned with his administration.

– The opposition (APC, linked to Oyetola) contested the validity of these polls, leading to legal battles and claims of illegitimacy.

In March 2025, the Accountant General of the Federation (AGF) directed the withholding of statutory allocations to Osun’s 30 local governments, citing the unresolved leadership dispute. These funds, drawn from the Federation Account, are meant for local operations, including salary payments.

Reports indicate the withheld amount has accumulated to around ₦130 billion (or more) by early 2026, with funds reportedly lodged in accounts (e.g., at UBA) but frozen or inaccessible to the recognized councils.

This has caused significant hardship:

– Many local government-dependent workers (teachers in primary schools, nurses/health workers in primary health centers, council staff, and pensioners) have gone months without regular pay—some accounts describe over 6–12 months of disruptions or reliance on state bailouts.

– The state government has reportedly borrowed or diverted funds to partially cover salaries, but it’s described as unsustainable.

– Impacts include inability to pay rent, school fees, medical bills; some families borrowing heavily, selling assets, or facing food insecurity.

– Council secretariats have faced sieges, closures, or harassment in some reports, further paralyzing operations.

On the legal front:

– Osun State sued the Federal Government, seeking release of the funds.

– In December 2025, the Supreme Court (in a 6-1 split decision) struck out the suit on procedural grounds: the Osun Attorney General lacked locus standi (standing) to sue on behalf of the local governments, as they are distinct entities.

– However, the court explicitly declared the Federal Government’s withholding of the funds unconstitutional and a “grave breach” of the 1999 Constitution (as amended), especially in light of prior rulings on local government financial autonomy (direct payments to LGAs).

– Despite this, the funds have not been released as of mid-February 2026.

Governor Adeleke has repeatedly appealed directly to President Bola Tinubu for intervention and release of the funds, framing it as illegal and politically motivated interference harming ordinary citizens. There are reports of planned meetings between Adeleke and Tinubu for a political resolution, and criticisms from groups like the NBA, Osun Council of Obas, and others urging compliance with the law.

The opposition (APC in Osun) has countered by dismissing some claims as exaggerated or denying outright withholding in certain statements.

This impasse highlights broader tensions in Nigerian federalism: local government autonomy vs. state/federal influence, often exacerbated by partisan rivalries (PDP governor vs. APC president and local opposition). While the Supreme Court faulted the withholding, the procedural dismissal has left the practical resolution pending—potentially through political negotiation, fresh legal action by the LGAs themselves, or federal compliance.

The human cost is undeniable: teachers, nurses, and retirees shouldn’t bear the brunt of political disputes. Calls for immediate release (as in editorials and public appeals) emphasize that constitutional provisions and court declarations demand the funds flow to legitimate local structures without further delay.

The situation remains unresolved as of now, with ongoing hardship for affected workers.