Political Tensions Emerge Over Local Government Fund Disbursement in Osun State
A recent development in Osun State has sparked a heated debate between the ruling People’s Democratic Party (PDP) and the All Progressives Congress (APC), centered around the release of six-month local government allocations. The APC, which holds a significant presence in the state, confirmed that the Federal Government had finally released the funds to the local government councils. However, the PDP and other stakeholders have raised serious concerns about the manner in which these funds were distributed.
The APC clarified that the money was deposited into the accounts of the local government councils, not directly into the private accounts of individual council chairmen or members. This statement came after the National Union of Local Government Employees (NULGE) accused the APC of illegally accessing the funds through bank accounts opened by court-sacked officials.
Dr. Nathaniel Ogungbangbe, Chairman of NULGE, claimed that the funds for March–August 2025 were transferred to “illegal” accounts linked to APC chairmen and councillors. He specifically named key figures in the Federal Government, including the Minister of Finance, Wale Edun, the Accountant-General of the Federation, Babatunde Ogunjimi, and the Attorney-General of the Federation, Lateef Fagbemi (SAN), accusing them of facilitating this process.
Ogungbangbe expressed deep concern over the situation, stating that such actions are unprecedented in Nigeria’s public administration history. He also highlighted a previous court order from the Federal High Court on May 15, 2025, which mandated maintaining the status quo. According to him, the Central Bank of Nigeria initially withheld payments as a result of this order.
The APC responded to these allegations by denying any wrongdoing. In a statement signed by its spokesperson, Kola Olabisi, the party insisted that the funds were indeed paid into the correct local government accounts. Olabisi criticized NULGE for attempting to interpret court rulings, emphasizing that the Court of Appeal’s judgment reinstating the APC officials is still valid.
He further accused NULGE of acting in self-interest and aligning with Governor Ademola Adeleke. “The NULGE needs not weave up a series of lies in respect of the payment of the federal allocations,” he stated. Olabisi urged security agencies to remain vigilant and warned against any form of intimidation.
In response to the APC’s admission, the Osun PDP called for transparency. The party demanded that the APC disclose the exact bank accounts where the funds were deposited and the signatories involved. They emphasized that none of the statutory officers managing the local government accounts were aware of the payments.
The PDP described the release of funds to the APC as a crime against the people of Osun State. They urged the APC to come clean and provide detailed information, arguing that the current lack of transparency is unacceptable. The party also reaffirmed its commitment to transparency and accountability under Governor Adeleke’s leadership.
This ongoing conflict highlights the broader challenges of governance and financial management in Nigeria. As the situation unfolds, all parties involved must ensure that the interests of the citizens remain at the forefront. The need for clear communication, accountability, and adherence to legal procedures cannot be overstated.



