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Seized N59bn Osun LG Fund: How It Affects Your Life

Seized N59bn Osun LG Fund: How It Affects Your Life
  • PublishedSeptember 12, 2025

The continued seizure of local government allocations meant for Osun State by the President Bola Tinubu-led Federal Government in the last six months is having excruciating effects on the people and hindering development at the grassroots, OSUN DEFENDER reports.

The medium gathered that a total sum of N59,277,387,774.65 (Fifty-Nine Billion, Two Hundred and Seventy-Seven Million, Three Hundred and Eighty-Seven Thousand and Seven Hundred and Seventy-Four Naira and Sixty-five Kobo) was released for the 30 LGAS in the state between February and June 2025.

According to figures obtained from the office of the Accountant General of the Federation, councils in Osun Central Senatorial District got N19,523,702,003.05, those in Osun West Senatorial District got N19,159,792,119.44 while the people of Osun East Senatorial District were allocated N20,234,628,099.86.

The breakdown further revealed that Ife East local government got the highest allocation of N2,373,387,070.18, while Ifedayo local government received the least allocation of N1,591,877,175.69.

The sum is part of the withheld allocations accruing to the councils in the last six months of its closure due to the ongoing political battle between the Peoples Democratic Party, PDP and the opposition All Progressives Congress, APC.

The crisis dates back to the twilight of former governor of the state, Adegboyega Oyetola’s administration, which rushed to organise a local government on October 15, 2022 after he lost to Governor Ademola Adeleke in the July 16, 2022 poll.

But the Federal High Court sitting in Osogbo on November 25 and 30, 2022, a few days before and after the swearing-in of Adeleke, nullified the election that brought in the APC local government chairmen and councillors and removed them from office.

The state government, thereafter, appointed caretaker committees to run the councils. The sacked APC officials challenged the ruling and secured a ‘favourable’ judgement at the Court of Appeal in Akure. Buoyed by the appellate court’s verdict, the APC chairmen and councillors returned to their council offices, asserting their legitimacy.

But Adeleke conducted a fresh round of local elections on February 22, 2025, where PDP candidates were declared winners. The elected officials were subsequently sworn in but directed to withhold assumption of physical control of the council secretariats to avoid clashes.

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Since the crisis broke out, grassroots development has continued to suffer, including essential services such as education, healthcare, issuance of marriage certificates and others. To put the withheld allocations into perspective, many residents and stakeholders have continued to consider the transformative potential of such an amount if it had been directed toward the real needs of the people.

Some of the analysis done by stakeholders who spoke with OSUN DEFENDER revealed that in education, building and equipping a standard secondary school costs around N150 million, stressing that part of the withheld funds could have delivered nearly 400 schools across the state. Alternatively, existing schools could have been renovated, with provisions for digital learning tools and scholarships for students. With the new minimum wage at N70,000, the monthly salaries of the awaiting 5,000 teachers in the state stands at N350 million, a paltry sum which would easily be paid so that students of the state can have access to quality teaching and learning.

In healthcare, a functional primary healthcare centre requires between N50 and N70 million. Osun could have built at least 800 such facilities, ensuring that even the most remote villages have access to doctors and nurses. Hospitals could also have been equipped with modern facilities to reduce maternal and infant deaths.

For roads, rural communities often struggle with isolation, especially during the rainy season. The cost of constructing one kilometer of rural road is around N200 to N300 million. The allocations could have provided 200 to 250 kilometers of new roads, connecting farmers to markets and children to schools.

In water and sanitation, a motorised borehole costs about N10 million. Osun could have drilled almost 6,000 boreholes, ensuring safe drinking water for nearly every community. This alone would have drastically reduced cases of waterborne diseases.

In job creation, N1 billion could establish an agro-processing or vocational training center. The withheld funds could have financed 50 to 60 such centers, offering skills and employment to thousands of young people. If disbursed as N500,000 loans or grants to small businesses, over 117,000 entrepreneurs could have been empowered to expand their ventures.

Housing also presents a compelling opportunity. At a cost of N5 million per low-cost housing unit, the allocations could have produced more than 11,000 new homes. This would have reduced slum conditions in urban areas and provided affordable housing for working families.

A non-profit organisation in the state, Insight Initiative for Community and Social Development, one of the stakeholders canvassing for the reopening of the councils and its withheld allocations, also condemned the continuous closure of the councils while calling for a meticulous approach to resolve the imbroglio.

This was contained in a statement by its Executive Director, Jare Tiamiyu.

A copy of the statement obtained by OSUN DEFENDER reads partly: “While we condemn the continuous shutdown of council secretariats in the state, due to the protracted leadership crisis, we appeal for calm and a meticulous approach to resolving the dispute, with a view to enable our councils return to full operations in no distant time.

“We have also in the last few weeks instituted a daily reminder of the number of days that local government offices have been under lock to awaken the consciousness of all stakeholders on the need to open our councils.

“As a non-partisan entity, we will continue to demand transparency, accountability and the delivery of good governance to the masses through our Osun Open Local Government (OsunOpenLG) Project. This, however, can only be achieved when allocations expected to be used to initiate programmes and policies for the benefit of the masses is withheld, denying people at the grassroots access to true dividends of democracy,” Tiamiyu noted.

As at today, the councils have been shut for over 207 days, with many residents of the state anxiously waiting for the day the current impasse will be resolved.