The Federal Government’s recent decision to release withheld statutory allocations to local government chairmen affiliated with the All Progressives Congress (APC) in Osun State has sparked intense controversy, igniting a political firestorm in a state where local government leadership remains a fiercely contested issue. The move, which has been hailed by APC members as a triumph for justice and the rule of law, has drawn sharp criticism from opponents, including the state government, key labor unions, and other stakeholders who view it as an act of political favoritism and a violation of legal and constitutional principles. The decision has not only deepened the existing political divide in Osun State but also raised broader questions about the autonomy of local governments, the role of federal authorities in state-level disputes, and the integrity of Nigeria’s judicial and administrative systems.
Background: The Local Government Crisis in Osun State
The crisis surrounding local government administration in Osun State is not a new phenomenon. For years, the state has been embroiled in legal and political battles over the legitimacy of local government chairmen and councilors, particularly between the ruling Peoples Democratic Party (PDP) and the opposition APC. The current controversy stems from a landmark Supreme Court ruling on local government autonomy, which mandated that federal allocations be paid directly to local government accounts rather than through state governments. This ruling was intended to ensure greater financial independence for local governments and prevent state governors from withholding or mismanaging funds meant for grassroots development.
In Osun State, however, the implementation of this ruling has been anything but straightforward. The state has witnessed a prolonged dispute over the legitimacy of local government officials, with the APC claiming that its chairmen and councilors, who were elected in previous polls, were unlawfully removed from office by the PDP-led state government. The APC has argued that a Court of Appeal judgment delivered on February 10, 2025, reinstated its officials, thereby affirming their right to receive and manage local government allocations. On the other hand, the PDP and its supporters, including the Osun State chapter of the Nigerian Union of Local Government Employees (NULGE), maintain that these APC chairmen and councilors were lawfully sacked by a Federal High Court, and their reinstatement is still subject to ongoing litigation at higher courts.
The Federal Government’s decision to release six months’ worth of withheld allocations—covering March to August 2025—to the APC chairmen has added fuel to this already volatile situation, triggering a wave of accusations, counter-accusations, and public debates.
Jubilation in the APC Camp
The APC in Osun State has greeted the release of the allocations with unrestrained jubilation, describing it as a vindication of their long-standing fight for justice and adherence to the rule of law. According to party leaders, the funds, which were deposited into the official accounts of the local government councils, represent a significant victory for grassroots democracy and the principles of local government autonomy as enshrined in the Supreme Court’s judgment.
In a press statement issued on Sunday, September 28, 2025, titled “Osun NULGE’s Many Lies On Council Allocations Debacle,” the Osun State APC celebrated the release of the funds and praised the Federal Government for upholding the Court of Appeal’s ruling. The party emphasized that the allocations were paid directly into the councils’ official accounts, refuting claims that the funds were diverted to private accounts controlled by APC members. “The funds were not paid into the private accounts of any APC member or chieftain,” the statement declared, accusing critics of spreading deliberate falsehoods to discredit the party and undermine the legal process.
The APC further argued that the Court of Appeal’s judgment of February 10, 2025, which reinstated its chairmen and councilors, remains the operative legal framework, as no appeal against it has been recorded. The party dismissed allegations of illegality, asserting that the Federal Government’s actions were in line with both the court’s ruling and the Supreme Court’s directive on local government autonomy. “It is not the duty of NULGE or any other body to interpret court judgments,” the APC stated, urging critics to respect the judiciary and refrain from actions that could destabilize the state.
For APC supporters, the release of the allocations is seen as a step toward restoring the authority of their elected officials and ensuring that local governments can function effectively to deliver services to the people. Party members have taken to the streets and social media platforms to express their excitement, hailing the reinstated chairmen as champions of grassroots governance and beneficiaries of a hard-fought legal victory.
NULGE’s Fierce Opposition
The Osun State chapter of the Nigerian Union of Local Government Employees (NULGE) has emerged as the most vocal critic of the Federal Government’s decision, describing it as an “unlawful” and “unprecedented” act that threatens the principles of constitutional governance. In a press conference held on Sunday, September 28, 2025, NULGE’s state president, Dr. Nathaniel Ogungbangbe, accused three principal officers of the Federal Government—the Minister of Finance, the Accountant General of the Federation, and the Attorney-General and Minister of Justice—of abusing their powers by releasing the allocations to “sacked” APC chairmen and councilors.
According to Ogungbangbe, the funds were paid into “illegal bank accounts” opened by the APC officials with United Bank for Africa (UBA) Plc, in violation of due process and established financial regulations. He argued that the accounts were not officially recognized as belonging to the local government councils and were instead set up by individuals whose legitimacy remains under legal dispute. “Paying local government allocations into privately opened and illegal bank accounts of politicians is unbelievable, bizarre, and unprecedented in the history of public administration in Nigeria,” Ogungbangbe stated, warning that the action sets a dangerous precedent for the nation’s governance system.
NULGE’s opposition is rooted in its interpretation of the legal status of the APC chairmen and councilors. The union insists that both the Federal High Court and the Court of Appeal have effectively sacked these officials, and their reinstatement is still subject to a final determination by the Supreme Court. Ogungbangbe accused the Attorney-General of overstepping his authority by effectively acting as a higher court and setting aside the judgments of the lower courts. “The Attorney-General is not above the law,” he declared, emphasizing that only the judiciary has the power to make binding decisions on the matter.
The union further expressed concern that the release of the funds could destabilize Osun State and create a crisis that might be exploited by political actors to justify declaring a state of emergency. “Their ultimate goal is to cause anarchy and use it to call on Mr. President to declare a state of emergency in the state so that they could loot our resources,” Ogungbangbe alleged, urging Governor Ademola Adeleke to maintain peace and stability in the state. He also called on the people of Osun to remain vigilant and resist any attempts to undermine the rule of law.
NULGE’s stance has been echoed by other stakeholders, including some civil society organizations and PDP supporters, who argue that the Federal Government’s actions are politically motivated and designed to favor the APC at the expense of legal and democratic principles. These critics contend that the release of the allocations undermines the authority of the state government and disregards the ongoing judicial process.
The Federal Government’s Dilemma
The Federal Government now finds itself at the center of a complex and politically charged controversy. On one hand, it has justified the release of the allocations as a necessary step to comply with the Supreme Court’s ruling on local government autonomy and the Court of Appeal’s judgment reinstating the APC chairmen. On the other hand, it faces accusations of overreaching its authority and interfering in a matter that is still before the courts.
The involvement of three key federal officials—the Minister of Finance, the Accountant General, and the Attorney-General—has drawn particular scrutiny. Critics argue that these officials have acted prematurely by disbursing funds to officials whose legitimacy is still in question, potentially undermining the judiciary’s role in resolving the dispute. The decision has also raised questions about the Federal Government’s impartiality, with some accusing it of aligning with the APC to weaken the PDP-led state government.
At the same time, the Federal Government is under pressure to demonstrate its commitment to local government autonomy, a principle that has gained significant traction in recent years. The Supreme Court’s ruling was seen as a landmark victory for grassroots governance, and any perceived failure to implement it could undermine public confidence in the federal administration. By releasing the funds to the APC chairmen, the Federal Government may be signaling its determination to uphold the autonomy ruling, even at the risk of escalating tensions in Osun State.
Political Implications and Accusations of Bias
The controversy has further deepened the political divide in Osun State, with both the APC and PDP accusing each other of manipulating the situation for partisan gain. The APC has accused NULGE of acting as a political tool for Governor Adeleke and the PDP, alleging that the union’s leadership is deliberately spreading falsehoods to discredit the Federal Government’s actions. “It is visible to the blind, audible to the deaf, and tangible to the morons that the members of the labor union are working for the interest of the PDP Governor Adeleke,” the APC’s statement asserted, dismissing NULGE’s claims of neutrality.
The PDP, in turn, has accused the APC and the Federal Government of engaging in a coordinated effort to undermine the state government and destabilize Osun. Party leaders have pointed to the timing of the fund release—coming amidst ongoing legal battles—as evidence of political maneuvering. They argue that the Federal Government’s actions are part of a broader strategy to weaken PDP-controlled states and bolster the APC’s influence ahead of future elections.
The accusations of bias have also extended to the judiciary, with some stakeholders questioning the impartiality of the courts in handling the local government dispute. The fact that the matter is still pending before the Supreme Court has led to calls for all parties to exercise restraint and allow the judicial process to run its course.
The Broader Implications for Local Government Autonomy
The controversy in Osun State has significant implications for the broader debate on local government autonomy in Nigeria. The Supreme Court’s ruling was intended to empower local governments by ensuring that they receive their allocations directly from the Federal Government, free from interference by state authorities. However, the Osun case highlights the challenges of implementing this ruling in a politically polarized environment where competing interests and legal disputes can complicate the process.
One key issue is the question of who has the authority to manage local government funds when the legitimacy of elected officials is in dispute. In Osun, the conflict between the APC chairmen and the PDP-led state government has created a situation where both sides claim the right to control the councils’ resources. The Federal Government’s decision to release funds to the APC chairmen has been interpreted by some as an attempt to bypass the state government, but it has also raised concerns about the potential for misuse of funds if the officials receiving them are later found to be illegitimate.
Another issue is the role of federal institutions in mediating state-level disputes. The involvement of the Minister of Finance, the Accountant General, and the Attorney-General has sparked debates about the boundaries of federal authority and the risk of overreach. Critics argue that these officials should have waited for a final judicial resolution before taking action, while supporters contend that their intervention was necessary to uphold the principles of local government autonomy.
Calls for Peace and Resolution
Amid the escalating tensions, there have been widespread calls for peace and dialogue to prevent the situation from spiraling into violence or further destabilizing the state. NULGE’s leadership has urged Governor Adeleke to continue his efforts to maintain peace, while also appealing to the people of Osun to resist attempts to provoke unrest. “Let all of us have faith in the Almighty God and our courts,” Ogungbangbe said, expressing hope that the judiciary would provide a resolution to the crisis.
The APC, for its part, has called on security agencies, including the Nigeria Police Force, the Department of State Services (DSS), and the Nigeria Security and Civil Defence Corps (NSCDC), to maintain “water-tight vigilance” to protect the state’s residents. The party has also urged NULGE and other critics to abandon what it described as “brigandage and crisis” and embrace the rule of law.
Governor Adeleke, who has so far maintained a relatively restrained public stance on the issue, faces the challenge of balancing his administration’s commitment to asserting control over local government administration with the need to avoid further escalation. His ability to navigate this crisis will likely have significant implications for his political standing and the PDP’s prospects in Osun State.
Conclusion
The release of withheld local government allocations to APC chairmen in Osun State has thrust the state into a new phase of political and legal controversy, with far-reaching implications for governance, judicial independence, and local government autonomy in Nigeria. While the APC celebrates the move as a victory for justice and grassroots democracy, opponents, led by NULGE and the PDP, view it as an act of political favoritism that undermines the rule of law. The Federal Government’s role in the dispute has further complicated the situation, raising questions about the balance of power between federal and state authorities.
As the legal battle over the legitimacy of the APC chairmen continues, all eyes are on the judiciary, particularly the Supreme Court, to provide clarity and resolution. In the meantime, the people of Osun State are left grappling with the consequences of a deeply polarized political environment, where competing claims to power and resources threaten to overshadow the broader goal of delivering effective governance at the grassroots level. The path forward will require careful navigation, restraint, and a commitment to upholding the principles of democracy and the rule of law.
