Tinubu Govt Freezes Osun LG Funds, Backs APC Chairmen Over PDP Counterparts, Moves To Open Parallel Accounts For ‘Favoured’ Chairpersons

Tinubu Govt Freezes Osun LG Funds, Backs APC Chairmen Over PDP Counterparts, Moves To Open Parallel Accounts For ‘Favoured’ Chairpersons

 

 

 

All Progressives Congress (APC)-backed local government chairmen in the state. As a result, allocations for three consecutive months—March, April, and May—have not been disbursed.

 

The Bola Tinubu-led Nigerian government has withheld local government allocations to Osun State since March 2025, SaharaReporters has learned.

 

According to multiple sources familiar with the matter, the federal government’s decision to freeze the funds is tied to a push for recognition of only All Progressives Congress (APC)-backed local government chairmen in the state. As a result, allocations for three consecutive months—March, April, and May—have not been disbursed.

 

The move follows the controversial local government elections conducted by the administration of Governor Ademola Adeleke, which reportedly angered the Tinubu government.

 

Sources said the Office of the Accountant General of the Federation halted the release of funds to Osun local government areas shortly after the polls.

 

Sources further disclosed that while the allocations remain withheld, local government chairmen loyal to the APC have made efforts to open official LGA accounts with the support of the Central Bank of Nigeria (CBN) branch in Osogbo. However, the Osun State government swiftly intervened to halt the move.

 

“Osun State is yet to receive local government allocations in the state for three months now, with June to make it the fourth month,” one of the sources revealed.

 

“The federal government asked individual LGAs to open accounts so they can receive monies directly there. When it got to Osun State’s turn, the CBN went to meet APC chairmen in connivance with the Accountant General’s Office, aiming to open the LGA accounts unilaterally for them without any input from the state government.

 

“The directive was that the director of administration on local government issues at the state level would sign the document meant for bank account opening, but none of this happened.”

 

“When Osun State Government found out, it wrote a letter to the Accountant General’s Office in protest, and this was how the state government was able to stop the move,” the source added.

 

Sources indicate that a new director was recently appointed at the Central Bank of Nigeria’s Osogbo branch, reportedly to assist with opening bank accounts for APC local government chairmen. However, the move created complications in obtaining the necessary signatures from the chairmen.

 

The local government elections held in Osun State in February were surrounded by controversy, with the APC rejecting the results and insisting that the chairmen elected under former Governor Gboyega Oyetola remained the legitimate officeholders.

 

According to reports, President Tinubu, during a meeting with Governor Adeleke at Aso Rock, acknowledged being aware that the governor had ordered the removal of the LGA chairmen. This came after Adeleke raised concerns about the halt in the disbursement of LGA funds to the state.

 

“The APC, including the CBN and Attorney General’s Office, have been using all machinery of state to release funds to the APC-recognised chairmen, ensuring that nothing is released to the state,” another source told SaharaReporters.

“In fact, the CBN went as far as meeting the APC chairmen, collecting their signatures—all in a bid to release the money to them.

 

“As of now, we do not know why funds have not been released because some days ago, during the FAAC meeting, Osun State raised this issue.”

 

Sources within the PDP told SaharaReporters that a recent Court of Appeal judgement meant that the APC-led Nigerian government had no right to withhold the allocation anymore.

“The LGA chairmen under APC duly re-instated by the court are in Osogbo for the opening of accounts by the CBN,” a source in the ruling APC told SaharaReporters.

 

Source: Sahara Reporters