How Osun LG Funds Were Held Back By FG

How Osun LG Funds Were Held Back By FG

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The Federal Government under President Bola Tinubu has withheld funds meant for local governments in Osun State, leaving councils without access to their statutory allocations for months.

LIST OF APPLICATIONS FOR REGULARISATION OF AREA COUNCIL LAND DOCUMENTS NULLIFIED/CANCELLED BY THE HONOURABLE MINISTER OF FCT

The withheld money affects local government allocations between March and December 2025, with records showing that a total of ₦131.5 billion was not released during the period, despite being approved through the Federal Allocation Account Committee.

LIST OF APPLICATIONS FOR REGULARISATION OF AREA COUNCIL LAND DOCUMENTS NULLIFIED/CANCELLED BY THE HONOURABLE MINISTER OF FCT

The issue centres on Osun State, where the funds were expected to be paid into local government accounts, but were instead held back by federal authorities following a disputed local government election conducted in February 2025.

The standoff began after the election was questioned by the ruling All Progressives Congress, which controls the Federal Government and oversees the disbursement of council funds nationwide, leading to a prolonged freeze that stretched across ten months.

The matter reached the Supreme Court in December, where the court faulted the Federal Government for acting against the constitution and ruled that the funds should be released directly to local government accounts, though the money has yet to be paid.