Tinubu Administration Withholds ₦131.5bn Osun Local Government Funds for 10 Months Despite Supreme Court Ruling

Nzubechukwu Eze
Nzubechukwu Eze

A review of Federal Allocation Account Committee (FAAC) data released by the Office of the Accountant-General of the Federation shows that the administration of President Bola Tinubu failed to release a total of ₦131.5 billion in local government allocations to Osun State over a ten-month period.

The unreleased funds, meant for the state’s local governments, cover allocations between March and December 2025. Records indicate that Osun State was due to receive ₦11.9 billion in March, ₦11.2 billion in April, ₦11.7 billion in May, and ₦12.1 billion in June. The allocation for July stood at ₦12.8 billion, while August recorded ₦14 billion.

Further figures show that ₦14.4 billion was withheld in September, ₦15.8 billion in October, ₦14.6 billion in November, and ₦13.09 billion in December, bringing the total amount withheld to ₦131.5 billion.

SaharaReporters had earlier reported that the Federal Government stopped releasing Osun State’s local government allocations from March 2025. The decision sparked controversy, largely linked to the conduct of a local government election in the state in February 2025, which was faulted by the All Progressives Congress (APC), the ruling party at the federal level.

In December, the Supreme Court criticised the Tinubu administration over the withholding of the funds, declaring the action unlawful and in violation of the 1999 Constitution. Delivering the lead judgment, Justice Mohammed Idris described the Federal Government’s conduct as constitutionally indefensible.

Justice Idris stated that “the hand of the federal government was soiled” by the unjust seizure of the funds and directed that allocations should be “directly channeled to local accounts.” The court also dismissed contempt allegations brought by the Attorney-General of the Federation against Osun State, noting that he was “in more contempt than Osun by not paying the fund as required by law.”

While faulting the Federal Government, the Supreme Court also criticised Osun State for instituting the suit without evidence of consent from the affected local governments. Justice Idris ruled that the Osun State Attorney-General ought not to have filed the case on their behalf without such authorisation.

In a dissenting opinion, Justice Emmanuel Agim held that the Osun Attorney-General was empowered to institute the suit and described the Federal Government’s action as unacceptable, warning that it was capable of crippling the operations of the local councils.

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