The Federal Government has withheld approximately ₦202 billion in statutory allocations due to the 30 local government councils in Osun State over a 15-month period, amid the lingering political and legal dispute surrounding the administration of local governments in the state.

 

According to an analysis of Federal Accounts Allocation Committee (FAAC) records, the withheld funds cover the period between March 2025 and May 2026. The report showed that about ₦131.5 billion was withheld between March and December 2025, while an additional ₦70.4 billion was not released between January and May 2026.

 

The development is linked to the ongoing controversy over the control of local government councils in Osun State following the disputed local government elections and subsequent legal battles between the state government and opposition political actors.

 

The withholding of the allocations has sparked concerns among stakeholders, who warn that the prolonged suspension of funds could adversely affect grassroots governance, including the payment of salaries and allowances of local government workers, primary school teachers, healthcare personnel, pensioners and traditional council staff.

 

Observers have also raised concerns over the potential impact on the execution of development projects and the delivery of essential services at the local government level.

 

The issue continues to generate political debate, with calls from various quarters for a resolution of the dispute and the release of the withheld funds to enable local governments discharge their constitutional responsibilities and meet the needs of residents across the state.

 

The Federal Government is yet to issue a fresh official statement on the reported withholding of the allocations, while stakeholders continue to monitor developments surrounding the dispute and its implications for local governance in Osun State.