The 30 local councils in Osun State, Nigeria, have been without statutory allocations for over 16 months due to a face-off over council elections, severely impacting grassroots development. According to official revenue-sharing data from the Federation Account Allocation Committee, about N216 billion earmarked for Osun's local councils was withheld between March 2025 and June 2026. This prolonged withholding has significant implications for the state's local governance and development.
A breakdown of the withheld funds reveals that N131.5 billion was not released between March and December 2025, while another N85.3 billion was withheld between January and June 2026. The monthly entitlements for the local councils varied, with allocations ranging from N11.9 billion in March 2025 to N15.8 billion in October 2025. These funds are crucial for the councils to execute their mandates and provide essential services to their constituents.
The development has led to heightened legal and political tensions between the Federal and Osun State governments, with the matter eventually being taken to the Supreme Court. The apex court ruled that the Federal Government's action was unconstitutional, describing it as a "grave breach of the 1999 Constitution." The court ordered that the funds be directly channeled to the local councils' accounts, emphasizing the importance of adhering to constitutional provisions.
The Supreme Court's lead judgment, delivered by Justice Mohammed Idris, criticized the Federal Government's decision, stating that its "hand was soiled" by the action. The court also dismissed contempt claims brought against the Osun State Government by the Attorney-General of the Federation. However, the court faulted the Osun State Government for filing the suit without proof that it had obtained the consent of the affected local councils.
In a dissenting view, Justice Emmanuel Agim argued that the Osun Attorney-General had the powers to initiate the case, describing the Federal Government's action as "in bad taste" due to its potential to cripple council activities. The divergent opinions highlight the complexities of the case and the need for a clear resolution to ensure the local councils receive their rightful allocations.
The withholding of funds has had a profound impact on the local councils, hindering their ability to provide essential services and execute development projects. The situation has also created uncertainty and instability at the grassroots level, affecting the livelihoods of residents in Osun State. Efforts are being made to resolve the issue and ensure the release of the withheld funds.
As the situation stands, the allocations for July to September 2026 were yet to be determined at the time of reporting. The affected local councils and stakeholders are eagerly awaiting a resolution to the impasse, hoping that the funds will soon be released to facilitate grassroots development and improve the quality of life for residents in Osun State.
Key points
- The Federal Government's withholding of N216 billion in allocations has crippled grassroots development in Osun State's 30 local councils for over 16 months.
- The Supreme Court has ruled that the Federal Government's action was unconstitutional and ordered the release of the withheld funds to the local councils' accounts.
- The situation has created significant tensions between the Federal and Osun State governments, with divergent opinions on the legitimacy of the Osun State Government's suit.
