Seized LG allocations: Osun warns Finance minister against planned diversion of govt funds to private accounts

Osun State

Osun State Governor Ademola Adeleke

By John Dike, Osogbo

Osun State Government has opposed an alleged move by the Minister of Finance, Mr. Wale Edun, to release the withheld local government funds running into billions of naira, to accounts of sacked All Progressives Congress (APC) chairmen and councillors in the state.

It described an alleged attempt to pay the ousted council officials as an unlawful diversion of funds meant for grassroots development.

Besides, it argued that the money in question, reportedly running into tens of billions of naira, belongs to the people of Osun State and its 30 local government councils, but not to individuals who no longer hold public office.

In a letter addressed to the minister, senior advocate and counsel to the Osun State Government, Mr. Musibau Adetunbi (SAN), described the purported move as “a mockery of the administration of justice and a ridicule of the nation’s institutions.”

The letter, titled “Again: Notification of the Pendency of Suit No: SC/CV/773/2025: Between Attorney General of Osun State v. Attorney General of the Federation in Respect of the Withheld Osun State Local Government Fund,” cautioned the minister against authorizing the disbursement of the funds while the matter is still pending before the Supreme Court.

Adetunbi stressed that the APC officials in question had been validly removed from office by rulings of both the Federal High Court and the Court of Appeal, and therefore had no legal claim to the funds. He warned that any attempt to release the money before the apex court rules on the case would amount to “a grievous assault on the rule of law.”

“Sir, if it is true that you have indeed written to Mr. President to approve payment of the local government funds to these court-sacked APC chairmen and councillors before the determination of the dispute by the Apex Court, then such an action is not only a mockery of the administration of justice but also a mockery of all the authorities of the nation, including that of Mr. President himself,” the letter read in part.

The letter said, “It is inconceivable that you would ask His Excellency, the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, to authorise the release of funds under legal dispute to these court-sacked chairmen and councillors.”

The government reiterated its position that the funds should not be tampered with until the Supreme Court delivers its verdict. It warned that any disbursement before then would not only be unlawful but would also erode public confidence in governance and the judicial process.

“It is on record that, as of today, the Federation has tens of billions of naira belonging to the 30 Local Government Councils of Osun State. These billions, we repeat, are for the well-being of the people… not money that politicians can whimsically appropriate to settle political associates and followers,” the letter added.

The Supreme Court is expected to rule on the matter in the coming weeks, a decision that will be pivotal in determining control over the disputed local government allocations.

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