Osun: Projects Stalled As FG Withholds Over N130 Billion LG Fund

By Ayodele Oni

The continued seizure of monthly allocation to local governments in Osun state by the Federal Government is taking its toll.

The federal government began withholding local government allocations in Osun State in March 2025.

The office of the Attorney General of the Federation issued a letter on March 26, 2025, directing the suspension of funds, with the crisis extending into later months of 2025.

The funds were withheld due to a dispute over which officials—the APC-led officials sacked in 2022 or the PDP officials elected in Feb 2025—were legitimate to run the councils.

By Jan 2026, it was reported that about N131.5 billion had been withheld.

This has led to non completion of several ongoing projects, especially roads.

Governor Ademola Adeleke has alleged that the “hijack” of about N300 billion in local government funds by the All Progressives Congress (APC) and the administration of Bola Tinubu is responsible for delays affecting several infrastructure projects across the state.

The governor spoke on Osogbo during a project review meeting with top officials overseeing major developments in the state.

Projects assessed at the meeting included the Ile-Ife flyover and road dualisation, the Lameco flyover in Osogbo, Ila Orangun township dualisation, Osogbo–Ofatedo–Awo junction dual carriageway, and the Iwo township dualisation, among others.

Additional projects reviewed include the reconstruction of the bridge linking Ilahun and Ere Ìjèsà, the Ibokun–Ilahun–Ere Ìjèsà–Iwoye Ìjèsà road, and the Otan Ile–Esa Odo–Iwoye Ìjèsà road in Obokun Local Government Area.

Adeleke stated that the situation surrounding local government funds has forced the state government to take on extra financial responsibilities, including the payment of salaries for council workers, teachers, healthcare personnel, and pensioners for over a year.

He accused the APC of diverting funds meant for grassroots administration, insisting that his government chose to continue supporting local workers rather than abandon them.

According to him, the state had to step in to prevent a breakdown in essential services, warning that without such intervention, local healthcare delivery, education, and other basic services would have collapsed.

“The workers have families and responsibilities. It would have been unjust to leave them stranded. That is why the state government has continued to shoulder these obligations,” the governor said.

He further alleged that the funds, estimated at N300 billion, remain effectively under the control of APC structures in the state, describing the development as a major setback to governance and infrastructure delivery.

Despite the challenges, Adeleke expressed satisfaction with the pace of ongoing work in some locations, noting that asphalt laying is currently ongoing in Ile-Ife, Iwo, and Ila Orangun.

He reassured residents in areas such as Ile-Ife, Ilesa, Iwo, Ede, Osogbo, and Ila Orangun of his administration’s commitment to development, adding that sacrifices are being made to ensure projects are completed.

The governor also urged contractors handling various projects to accelerate work across all sites to meet expectations and deliver the needed infrastructure.