N63bn Osun LG Funds Released; PDP Demands Inquiry

Unveiling the Disbursement of Withheld Allocations

Recent records from the Office of the Accountant-General of the Federation (OAGF) have revealed that an estimated N63 billion in withheld allocations from the Federation Account may have been disbursed to the ‘sacked’ All Progressives Congress (APC) chairmen of the 30 local government areas of Osun State. These findings, obtained by Daily Trust from the OAGF website, show that a total sum of N46.98 billion was distributed to the councils between March and June 2025. The funds were released alongside July and August allocations, whose details have not yet been published on the website.

The councils might have received at least N16 billion for July and August, based on previous allocations they received during the same period in the post-subsidy era. For example, in July and August 2023, the local governments received N7.5 billion respectively. In 2024, they got N9.8 billion for July and N9.7 billion for August.

According to the OAGF records, the cumulative funds received by each council between March and June 2025 were as follows:

• Atakumosa East LG: N1.42 billion
• Atakumosa West: N1.38 billion
• Ayedade: N1.7 billion
• Aiyedire: N1.47 billion
• Boluwaduro: N1.48 billion
• Boripe: N1.64 billion
• Ede North: N1.41bn
• Ede South: N1.42bn
• Egbedore: N1.41bn
• Ejigbo: N1.61 billion
• Ife Central: N1.28 billion
• Ife East: N1.88 billion
• Ife North: N1.76 billion
• Ife South: N1.61 billion
• Ifedayo: N1.26 billion
• Ifelodun: N1.54 billion
• Ila: N1.34 billion
• Ilesha East: N1.50 billion
• Ilesha West: N154 billion
• Irepodun: N1.56 billion
• Irewole: N1.67 billion
• Isokan: N152 billion
• Iwo: N1.85 billion
• Obokun: N1.56 billion
• Odo-Otin: N1.82 billion
• Ola-Oluwa: N1.41 billion
• Olorunda: N1.65 billion
• Oriade: N1.69 billion
• Orolu: N1.51 billion
• Osogbo: N1.67 billion

Accusations and Denials

The state chapter of the National Union of Local Government Employees accused the federal government of disbursing the withheld six months’ allocation from March 2025 to August 2025 into accounts opened by the APC-led chairmen and councilors, despite pending court cases on the issue.

However, the Osun APC clarified that the funds were disbursed into the accounts of the local government councils, not private accounts. Speaking to Daily Trust, the spokesperson for the APC in Osun State, Kola Olabisi, stated, “It is not a problem because when we get to the river, we will devise a means of crossing the bridge. It is not about extension; it is about determination.”

He further emphasized that the reinstated chairmen and councilors’ constitutional rights to spend their three years should be determined by the court. “If Governor Adeleke agrees that the tenure will elapse in October, it means he has shot himself in the leg,” he said.

Legal Challenges and Court Cases

In early September, the ‘reinstated’ council executives filed a suit at the Federal High Court, Osogbo, against several officials, seeking an extension of their tenure beyond its scheduled expiration in October 2025 to February 19, 2028. They argued that their tenure should commence from the date they were inaugurated as elected council members in February 2025, not from October 2022 when they were first elected but denied office.

Olabisi also mentioned that while the allocations were released to the councils, he did not know the exact amounts, contradicting previous denials by the Central Bank of Nigeria and the OAGF.

Banking Restrictions and Allegations

An Oyo State High Court had restrained the United Bank for Africa (UBA) from paying out any money from accounts opened in the names of the 30 local governments in Osun State by the APC council chairmen and councillors. The State Assembly also cautioned commercial banks in the state against granting unauthorized access to allocations belonging to local government areas.

The state chairman of the PDP, Sunday Bisi, asked the Inspector-General of Police to investigate an alleged attempt by the ex-APC council chairmen to pay out almost N12.75 billion from the six months’ allocations paid into the local governments’ UBA accounts to a senior lawyer.

Bisi alleged that the chairmen had directed the bank to pay the lawyer the amount as legal fees incurred on the local government litigations. He called for criminal investigations against the illegal APC chairmen.

Rebuttal from APC

Reacting to the allegations, the APC spokesman, Olabisi, told Daily Trust that the claim was unfounded. “It remains in the realm of conjecture. So, it is nothing to be relied upon. It is baseless and unfounded and it should be discountenanced. There is no element of truth in it. It is just a way of weaving lies together to portray our party in a bad light,” he said.

Background of the LG Leadership Crisis

The Federal High Court in Osogbo nullified the October 15, 2022 local government election, which produced APC chairmen and councillors. The Court of Appeal later overturned this ruling, leading to a conflict between the APC and PDP. The state government conducted a fresh election in February 2025, resulting in PDP victories, but these officials were instructed not to assume physical control of the council secretariats to avoid conflict.

The APC returned to the councils, leading to a clash that resulted in the death of an APC chieftain. Governor Adeleke shut down all local government council secretariats to prevent further unrest. The APC then requested the federal government to withhold the council allocations, arguing the elections were unlawful. The matter is still before the Supreme Court.