Ademola Adeleke Accuses FG of Withholding Osun Local Government Funds for Political Reasons

Governor Ademola Adeleke of Osun State has accused the Federal Government of deliberately withholding the state’s local government funds, alleging that the move is politically motivated and targeted at undermining his administration’s development agenda at the grassroots level.

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In a statement released on Thursday by his spokesperson, Mallam Olawale Rasheed, Governor Ademola Adeleke expressed deep concern over what he described as a “coordinated economic sabotage” designed to frustrate the delivery of democratic dividends to the people of Osun. He lamented that the Federal Government’s alleged refusal to release the statutory allocations due to local governments in the state had severely affected key community projects and essential services.

According to Adeleke, despite fulfilling all procedural requirements and maintaining transparency in fiscal operations, the state has not received the expected local government allocations for several months. He claimed that the funds were being deliberately withheld under the guise of administrative review, when in reality, the motive was to weaken his political influence ahead of the 2026 governorship election in Osun.

“What we are witnessing is pure political victimization. The Federal Government is withholding Osun’s local government funds to frustrate our people and halt our grassroots development efforts,” Governor Ademola Adeleke said.
“The funds belong to Osun, not to any political party. Withholding them is not only unconstitutional but also inhumane.”

Impact on Local Development

The governor explained that the delay in the release of funds had caused significant setbacks in rural infrastructure, primary healthcare, and education. He said several local government projects, including road rehabilitation, borehole construction, and market upgrades, had been suspended due to financial constraints.

Chairmen of local government areas across the state reportedly confirmed the development, lamenting their inability to pay workers’ salaries and execute approved community projects. One of the council chairmen, who spoke anonymously, said that many councils were struggling to keep basic administrative operations running.

“We have pending projects that were supposed to benefit our people, but since the allocations stopped coming, everything has been put on hold,” the chairman said. “This situation is crippling our communities.”

Adeleke Calls for Intervention

Governor Ademola Adeleke called on President Bola Ahmed Tinubu to urgently intervene in the matter and ensure that Osun State receives its full allocations as enshrined in the Nigerian Constitution. He reminded the Federal Government that the joint account system between states and local governments should not be manipulated for political purposes.

“I call on President Tinubu, as a democrat, to address this injustice. Governance should not be about political rivalry; it should be about service to the people,” Adeleke stated. “Osun deserves fair treatment, and our local governments deserve their funds.”

The governor also disclosed that his administration had officially written to the Federal Ministry of Finance and the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC), demanding an explanation and immediate release of the withheld funds.

Federal Government’s Response

Reacting to the allegations, a senior official in the Ministry of Finance, who requested anonymity, denied that the Federal Government was withholding Osun’s allocations for political reasons. The official explained that the delay was due to ongoing audits and reviews aimed at ensuring accountability and compliance with financial regulations across all states.

“It is not about politics,” the source said. “There are verification processes to ensure that local government allocations are properly disbursed and utilized. Osun is not being singled out.”

However, critics have described the explanation as insufficient, noting that other states have continued to receive their allocations without such prolonged delays. Political observers believe the situation could heighten tensions between the Osun State Government and the ruling All Progressives Congress (APC)-led Federal Government, especially as preparations for the 2026 elections intensify.

Political Undertones and Public Reaction

Political analysts argue that the standoff reflects the broader struggle for control between the Peoples Democratic Party (PDP) government in Osun and the APC-controlled Federal Government. They warn that the crisis could deepen divisions and disrupt governance if not promptly resolved.

Residents across the state have taken to social media to express frustration over the situation, blaming both tiers of government for allowing politics to interfere with development.

“We just want our communities to grow,” said a resident in Ilesa. “If the Federal Government withholds our money, it is the people who suffer, not the politicians.”

Adeleke Reaffirms Commitment to Grassroots Development

Despite the financial strain, Governor Ademola Adeleke reiterated his administration’s commitment to improving lives at the grassroots. He emphasized that his government would continue to pursue innovative funding strategies to sustain local projects, including partnerships with development agencies and private investors.

“We will not allow politics to derail our vision for a prosperous Osun,” Adeleke declared. “Our mission is clear—to empower local governments and ensure that every community feels the impact of democracy.”

As the dispute lingers, stakeholders are calling for transparency, dialogue, and adherence to constitutional provisions governing revenue allocation. Observers say how the issue is resolved will not only affect Osun’s economy but also set a precedent for federal-state relations in Nigeria’s evolving democracy.